Goldman's defensive stocks with quality-growth characteristics
Goldman Sachs strategists are advising clients to shift toward 23 unloved and lagging defensive stocks from sectors like health care and consumer staples as big tech wobbles. Amid concerns that narrow market leadership and the artificial intelligence trade may falter, the Wall Street bank highlights equities such as Tyson Foods, Hershey, and AbbVie. This strategy targets investors wary of market concentration risks as economic and earnings growth face a decelerating backdrop heading toward 2027.
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- ✓ Goldman Sachs has urged clients to buy 23 stocks from lagging sectors as big tech wobbles.
- ✓ The recommended equities include defensive health care and staples stocks led by Tyson Foods, Hershey, and AbbVie.
- ✓ Goldman Sachs sees S&P 500 earnings reaching $415 in 2027 while warning that narrow leadership remains a risk.
What changed
Goldman Sachs released a list of 23 defensive equities from lagging sectors to guide investors away from volatile market leaders.
Live updates
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Goldman Sachs Urges Investors to Buy 23 Defensive Stocks
Goldman Sachs strategists are advising clients to shift toward 23 unloved and lagging defensive stocks from sectors like health care and consumer staples as big tech wobbles. Amid concerns that narrow market leadership and the artificial intelligence trade may falter, the Wall Street bank highlights equities such as Tyson Foods, Hershey, and AbbVie. This strategy targets investors wary of market concentration risks as economic and earnings growth face a decelerating backdrop heading toward 2027.
Why it matters
The S&P 500 recently experienced its worst weekly performance since late June, driven by heavy reliance on large technology companies. Goldman Sachs expects overall economic and earnings growth to remain positive but decelerate into a more challenging environment. To mitigate these risks, the bank urges a rotation into lagging sectors that exhibit quality-growth characteristics.
What is confirmed
- Goldman Sachs has urged clients to buy 23 stocks from lagging sectors as big tech wobbles.
- The recommended equities include defensive health care and staples stocks led by Tyson Foods, Hershey, and AbbVie.
- Goldman Sachs sees S&P 500 earnings reaching $415 in 2027 while warning that narrow leadership remains a risk.
Still unconfirmed
- Goldman Sachs is still betting on a year-end rally for the S&P 500 despite current market volatility.
What to watch next
- Broader sector rotation trends away from mega-cap technology stocks
- Subsequent corporate earnings reports from the recommended defensive companies
- Shifts in S&P 500 market leadership as year-end approaches
confidence 95%Sources used for this update (13)
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- Seeking Alpha — Goldman's defensive stocks with quality-growth characteristics
- MarketWatch — Big tech is wobbling. Goldman Sachs says it’s time to buy these 23 unloved stocks instead.
- Quartz — Goldman Sachs is urging clients to buy 23 stocks from lagging sectors as big tech wobbles
- investingLive — Goldman Sachs sees S&P 500 earnings at $415 in 2027 but warns narrow leadership is a risk
- Seeking Alpha — Goldman Sachs sees room for stocks to rise, warns not to chase market leaders
- Yahoo Finance — Goldman Sachs is still betting on a nice year-end rally for the S&P 500
- ground.news — Goldman's Defensive Stocks with Quality-Growth Characteristics
- finance.yahoo.com — Goldman Names 23 Defensive Stocks for Investors Worried About ...
- www.businessinsider.com — Goldman Sachs says buy these 23 defensive stocks as the ...
- www.cnbc.com — Goldman says play defense with these stocks if you're ... - CNBC
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