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Goldman Sachs analysts have named a slew of stocks that could see a rally heading into April. The company said that these companies are in a good position at the start of the second quarter. CNBC Pro combed through Goldman Sachs research to find the company's favorite stocks recently. The names listed below are all rated to buy. They include United Parcel Service, Nasdaq, Arcos Dorados, Global Payments, and Arista Networks. Arcos Dorados, the operator of McDonald's in Latin America, is down more than 12% in 2024, but the decline is worth buying, according to Goldman Sachs. “We view Arcos' ongoing sell-off as undeserved, and believe it creates a unique buying opportunity for investors wanting to add exposure to one of Brazil's fastest-growing retailers,” analyst Thiago Bortolussi said. Same-store sales are strong, and Arcos remains a winner in many parts of Brazil where competition is thin, he said. In addition, the opening of stores continues apace, he added. While the company's franchise agreement expires in 2027, the company said an extension could lead to a reclassification. Even though inventory is down to start the year, it's too compelling to ignore, Bortolussi said. “with [return on invested capital] Near all-time highs, accelerating store openings, an above-inflation social security system, and a relatively easy competitive backdrop, we see 2024 as a year of continued growth, strengthening leadership position and higher valuations. For the index company and global markets, according to analyst Alexander Bluestein. The company upgraded the stock to buy from neutral earlier this week, saying it had finally reached an inflection point with growth surging. Blaustein said he sees “the financial technology and index” on the Nasdaq company saying: “The company's revenues drive the company's valuation multiple over time.” Buybacks may also be in the company's future. “Given NDAQ's ability to generate excess free cash flow after debt reduction and dividends, we believe this opens up significant opportunity to execute buybacks starting in 2025,” Bluestein said. At the same time, the company's shares are well positioned for gains. The Nasdaq is up 8.5% this year. “NDAQ is set to benefit from an improving market backdrop,” the analyst said. UPS and Goldman Sachs said earlier this week that shares of the shipping giant are ripe for buying. Analyst Jordan Alliger exited an investor meeting “Management discussed various initiatives on market penetration, productivity and their impact on revenue and margin growth through 2026,” he said. Alliger acknowledged that the stock is a show-stopping story, but said investors' concerns about growth Largely overstated. “However, we recognize that growth has faced challenges over the past two years, and UPS will likely prove that reacceleration is possible for markets to give it credit,” he wrote. UPS shares are down more than 5% year-to-date. He added Analyst: “We maintain a buy rating on UPS because we believe volumes will eventually recover, and costs will moderate, which when combined with productivity savings should actually lift margin.” Arista Networks “We gain confidence in the above ANET consensus revised EPS estimates. …As the leading brand provider of switches to ultra-expanders in the U.S., ANET is well positioned to benefit from the continued growth in data, digital transformation “The continuous increase in workloads from on-premise to public and hybrid clouds, and the increasing demand for higher bandwidth, faster speed, and lower latency.” Read more about this call here. UPS “However, we recognize that growth has been challenged over the past two years, and UPS will likely demonstrate that re-acceleration is possible for markets to take credit for. … Management discussed various initiatives on market penetration and productivity with their impact on revenue and margin growth through 2026 ….We remain with a buy rating on UPS because we believe volumes will eventually recover, and costs will moderate, which when combined with productivity savings should really lift margin.” Nasdaq “After several years of challenging EPS growth, we see NDAQ's earnings trajectory accelerating to ~12% in 2025 and 2026 as the mix shifts toward fintech revenue and higher value indices driving higher company valuations over time. … Given NDAQ's ability to generate excess free cash flow following deleveraging and dividends, we believe this opens up a significant opportunity to execute buybacks starting in 2025. … NDAQ is set to benefit from an improving market backdrop. Arcos Dorados “We consider a continued sell-off of Arcos is undeserved, and we believe it creates a unique buying opportunity for investors wanting to add exposure to one of Brazil's fastest-growing retailers. With investment returns approaching all-time highs, store openings accelerating and with the Social Security system above inflation, and a relatively easy competitive backdrop, we see 2024 as a year of continued growth, consolidation of leadership position and higher valuations. Global Payments “We hosted an investor meeting at GPN's Atlanta headquarters with CEO Cameron Brady and CFO Josh Whipple…Given the number of initiatives underway, we were impressed with the company's ability to maintain its mid-teens earnings growth algorithm at the same time, and we consider This is useful context in understanding low margin expansion in 2024.”
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