Goldman Sachs Pins Hopes on Alibaba and Ulta Amid Market Volatility
Goldman Sachs has identified several stocks it believes are worth investing in despite recent market dips. The bank predicts Alibaba Group will see a significant recovery in its earnings per share, with a predicted increase of 64% in fiscal year 2027 and 33% in fiscal year 2028.
This growth is expected to stem from Alibaba's strong position in the artificial intelligence and cloud sectors, as well as a rebound in its overall e-commerce profitability. Analyst Kate McShane believes Ulta Beauty has also been unfairly penalized after facing a nearly 7% decline this year.
McShane suggests that concerns about promotional activities and conservative guidance for the second half of the year might be overstated, pointing out that Ulta is positioned to gain market share in a competitive beauty landscape. She maintains that Ulta is a strong buy.