Goldman added $Amazon.com(AMZN)$ , $Burlington(BURL)$ , $Huntington Ingalls(HII)$ , $Johnson Controls(JCI)$ and $Occidental(OXY)$ to its US Conviction List in the bank's October update.
It removed Air Products and Chemicals, ConocoPhillips, Golar LNG, Loar Holdings and Tyson Foods.
On Amazon, they see the company producing a strong mix of revenue growth and margin expansion over several years. They pointed to demand for its computing power from AI, improving e-commerce profitability and a growing advertising business.
Goldman expects Burlington to deliver revenue growth above 10% through 2028, driven by store openings and SSS growth above 3%. They also see margins improving toward the retailer's long-term target of about 10%.
Huntington Ingalls returns to the list after being removed in March. They highlight the company's position as a pure US Navy shipbuilder, with shipbuilding revenues up +15% to +20% for 4 straight quarters.
Goldman said Johnson Controls is in the early stages of a transformation that could more than double EPS through 2028. They note its AI data center cooling business has grown orders by more than +30% for 3 consecutive quarters, lifting backlog to a record $21B.
On Occidental, Goldman said advanced recovery techniques could add 2Bboe to reserves, while cost measures could generate up to $4B in additional cash flow by 2030.
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