Goldman Sachs has identified CAE as a stock that is currently flying under the radar. The Canadian training and simulation provider has seen its shares dip by 17% this year, but analyst Noah Poponak believes that this presents a buying opportunity. The company has been unfairly punished due to struggles in its civil aviation and defense divisions. However, Poponak argues that the market has not properly appreciated the growth potential of CAE’s civil segment. With valuation levels at a discount compared to its peers in the aerospace supply chain, CAE is seen as a significantly undervalued commercial aerospace asset.
BJ’s Wholesale Club is another company highlighted by Goldman Sachs as having strong growth potential. With a 20% increase in share value this year, analyst Kate McShane believes that the company is firing on all cylinders. BJ’s has shown strong traffic trends, unit volume growth in grocery categories, and greater customer engagement. The recent earnings report from BJ’s beat expectations and reaffirmed its forward guidance, proving that growth opportunities are still plentiful. The company’s long runway for new club growth is expected to continue gaining market share in the future.
Workday has been recognized by Goldman Sachs as a growth opportunity in the enterprise cloud management sector. With shares rising by nearly 25% in the past three months, analyst Kash Rangan is optimistic about the company’s future. Workday’s execution of growth initiatives has been paying off, with management implementing a successful strategy. Rangan believes that Workday is on track to become a $20 billion business, driven by financials moving to the cloud. The company’s best-in-class retention rates and attractively valued shares make it an appealing investment option.
CrowdStrike has been highlighted by Goldman Sachs as a company that is expected to return to strong revenue and earnings growth. The cybersecurity firm is poised to regain industry leadership after executing a thoughtful playbook on transparency and engagement. With a focus on returning to 20%+ revenue growth and 30%+ EPS growth over the next 12-24 months, CrowdStrike is attracting attention from investors. The company’s recent earnings commentary has instilled confidence in its ability to maintain long-term growth.
Ducommun is another company that Goldman Sachs has identified as having a strong growth outlook. With exposure to the aerospace original equipment market and a growing aerospace aftermarket, Ducommun is well-positioned to benefit from increased production demand. Despite recent pressures in its defense business, the company is expected to see accelerated growth in that segment due to recent orders and easier comparisons. Ducommun’s strong fundamentals and market positioning make it an attractive stock for investors looking for growth opportunities in the aerospace sector.
Goldman Sachs has identified a handful of stocks that are currently undervalued but have significant growth potential. Investors looking for opportunities in the aerospace, retail, cloud management, and cybersecurity sectors may find these companies to be compelling investment options. It is advisable for investors to conduct their own research and due diligence before making any investment decisions.