These stocks are 'built for growth' and have major upside, Goldman analysts say
Goldman Sachs said this week that there's a host of buy-rated stocks that are well positioned for growth. The firm said it's standing by these companies in the face of an uncertain macro economic environment. CNBC Pro combed through Goldman's research to find stocks the firm likes for the long haul. They include Monday.com , Booz Allen Hamilton, Brink's, Apollo Global Management and Constellation Brands. Booz Allen Hamilton Booz Allen is up 20% this year, but the government and military contractor's stock has more room to run, according to Goldman. Analyst Noah Poponak doubled down on the stock after its mostly mixed earnings report in late October. "Booz Allen again beat consensus revenue, growing top-line 15% organically, continuing a pace well ahead of nearly all peers in the national security sector," he said. He raised his price target on the stock to $136 from $133, adding Booz shares are particularly compelling. "We continue to believe BAH has a strong position in Government IT with market leading positions in multiple growth avenues, and anticipate further strength in financial performance in the medium-term," Poponak said. The analyst acknowledged that margins were a little lower than expected. However, he thinks those fears are overdone. "Best-in-class growth and margins in Government IT," Poponak said. Constellation Brands "Built for growth," analyst Bonnie Herzog said in a note, following the beer and wine producer's recent analyst day. "We attended STZ's Investor Day in NYC and came away with renewed optimism about mgmt's vision to drive sustained, strong profitable growth over the next several years," she said. Herzog said Constellation has an impressive strategy for delivering for shareholders, along with several tools in its arsenal going forward. They include a buyback plan, development of new products and increasing appeal to different demographics. Further, the firm's survey checks show Constellation's Modelo brand strength, and Herzog said it's well positioned for share gains. Meanwhile, the stock is up just 3.3% this year, making shares very compelling. "We believe STZ remains one of the best growth stories across the U.S. Staples universe with top-tier volume-driven topline growth that should support top tier valuation," she said. Monday.com The Israel-based project management company is firing on all cylinders heading into earnings on Monday , according to analyst Kash Rangan. Shares are down 6% over the past month, but the analyst said that concerns about the stock's recent underperformance are overdone. In fact, Rangan sees numerous positive catalysts in the months ahead. Monday.com has an analyst day in early December, which Rangan thinks will offer a "lens into [Monday's] LT [long term] growth potential." "We believe this should help investors quantify MNDY's broad [total addressable market] opportunity and affirm our confidence that the company has a solid path to becoming a viable strategic, enterprise-grade software company," he added. Rangan also said Monday.com is seeing the benefit of businesses' shift to digital platforms. "With low penetration of a large $40bn to $70bn TAM and an expanding portfolio of offerings, we believe Monday should sustain elevated sales growth in the near-term," the analyst said. Booz Allen Hamilton - buy rating "Booz Allen again beat consensus revenue, growing top-line 15% organically, continuing a pace well ahead of nearly all peers in the national security sector. … We continue to believe BAH has a strong position in Government IT with market leading positions in multiple growth avenues, and anticipate further strength in financial performance in the medium-term. … Best-in-class growth and margins in Government IT." Constellation Brands - buy rating "Built for growth. … We attended STZ's Investor Day in NYC and came away with renewed optimism about mgmt's vision to drive sustained, strong profitable growth over the next several years. … We believe STZ remains one of the best growth stories across the U.S. Staples universe with top-tier volume-driven topline growth that should support top tier valuation." Monday.com - buy rating "Expect little to no disruption to near-term execution; see Investor Day offering lens into LT growth potential. … We believe this should help investors quantify MNDY's broad TAM opportunity and affirm our confidence that the company has a solid path to becoming a viable strategic, enterprise-grade software company. … With low penetration of a large $40bn to $70bn TAM and an expanding portfolio of offerings, we believe Monday should sustain elevated sales growth in the near-term." Brink's - buy rating "We believe Brink's is favorably leveraged to a rising mix of high-growth, high-margin Digital Retail Solutions and ATM Managed Services, which on a combined basis grew 18% y/y organically in 3Q and represented 20%+ of TTM [trailing 12-month] revenue. … BCO is additionally realizing improved pricing gains due to contract optimization efforts, leading to strengthened revenue growth and margin flow-through." Apollo Global - buy rating "APO remains on track for solid earnings growth next quarter and through 2024, solidifying the firm as among the best positioned Alts managers to take advantage of evolving opportunities across Private Credit, insurance, and retail. … We walk away from the quarter with slightly updated views on APOs' capital strategy and position. Coming off of a quarter with no opportunistic buybacks, we expect opportunistic buybacks to pick up, but over a longer period of time."