Goldman Adds Five Stocks to U.S. Conviction List Amid Growth Expectations

Goldman Sachs has updated its U.S. Conviction List for October, adding five stocks to its roster and removing five others.

The additions include Amazon (), Burlington Stores (), Huntington Ingalls (), Johnson Controls (), and Occidental Petroleum ().

Goldman analysts highlighted various growth drivers for these companies: Eric Sheridan sees Amazon producing a strong mix of revenue growth and margin expansion over several years, driven by demand for its computing power from AI, improving e-commerce profitability, and a growing advertising business.

Brooke Roach expects Burlington to deliver revenue growth above 10% through 2028, driven by store openings and same-store sales growth above 3%. She also sees margins improving toward the retailer's long-term target of about 10%.

Noah Poponak noted Huntington Ingalls' position as a pure U.S. Navy shipbuilder, with shipbuilding revenue up 15% to 20% for four straight quarters.

Joe Ritchie said Johnson Controls is in the early stages of a transformation that could more than double earnings per share through 2028, driven by its AI data center cooling business, which has grown orders by over 30% for three consecutive quarters, lifting backlog to a record $21 billion.

Neil Mehta pointed out Occidental's potential for advanced recovery techniques to add 2 billion barrels of oil equivalent to reserves, and cost measures that could generate up to $4 billion in additional cash flow by 2030.