Goldman Sachs Picks Top Stocks to Buy Amid Market Weakness

Goldman Sachs has identified five stocks that it believes investors should consider buying following recent market weakness.

The banking giant sees attractive entry points in these companies due to strong growth catalysts and expects them to deliver a strong recovery over the next two fiscal years.

The first stock is Alibaba, which Goldman remains bullish on. The Chinese technology giant continues to benefit from accelerating demand for artificial intelligence and cloud services, with analysts expecting it to deliver a strong earnings recovery driven by its leadership in China's AI and cloud markets.

Ulta Beauty is another stock that has become a buying opportunity after recent share price weakness, despite concerns about promotional activity across the beauty sector. The company reported strong second-quarter results, with net sales rising 8.9% and operating income increasing 10.1%, and analysts expect it to continue gaining market share as it benefits from exclusive product offerings, customer loyalty programs, and expansion initiatives.

Burlington Stores has also been identified by Goldman Sachs as a value stock after investors reacted negatively to a mixed quarterly report. The retailer continues to execute well on profitability and expansion, with strong margins, improving store productivity, and multiple operational growth drivers supporting earnings growth over the coming years.

Viking Holdings, a luxury cruise operator, has fallen sharply in recent weeks amid concerns about low water levels affecting parts of its European river cruise business. However, Goldman continues to view the stock as a compelling long-term opportunity due to its affluent customer base and differentiated geographic exposure.

AECOM, an engineering and infrastructure company, has faced pressure from fears that AI could disrupt parts of the design industry, along with uncertainty surrounding legacy construction management projects. However, Goldman argues that the market may be overestimating these risks, resulting in a valuation discount that does not fully reflect AECOM's long-term growth prospects.