Investing.com -- In a note to clients on Tuesday, Goldman Sachs analysts highlighted stocks that offer both stability and visibility amid growing market uncertainty, particularly surrounding tariff policies.
As investors seek defensive plays, lower-volatility stocks have recently outperformed, leading Goldman to identify companies with defensible revenue streams, consistent growth, and attractive valuations.
Among the names mentioned for stability, Goldman lists PepsiCo (NASDAQ:PEP), Waste Management (NYSE:WM), Travelers (NYSE:TRV), S&P Global, and PG&E (NYSE:PCG).
The companies, analysts note, have low stock price volatility, strong financial returns, and solid growth prospects, making them resilient across different market environments.
Goldman also identifies stocks that offer high revenue growth, margin expansion, and strong cash flow visibility while maintaining lower volatility than their sector peers.
These include Live Nation, Spotify (NYSE:SPOT), Intuit (NASDAQ:INTU), and Vertex Pharmaceuticals (NASDAQ:VRTX).
In addition to focusing on stability and visibility, Goldman screens for other key investment themes. Among out-of-consensus buy ratings, analysts highlight Baxter International (NYSE:BAX), Lennox International (NYSE:LII), and Sprouts Farmers (NASDAQ:SFM) Market.
Stocks with above-consensus earnings estimate potential include Canadian Natural Resources (TSX:CNQ), Newmark Group (NASDAQ:NMRK), and Atlassian (NASDAQ:TEAM).
For sales and EPS growth potential, Goldman points to DraftKings (NASDAQ:DKNG), Tradeweb, and e.l.f. Beauty (NYSE:ELF). In the value category, analysts highlight Belden (NYSE:BDC), Commercial Metals Company (NYSE:CMC), and Cenovus Energy (NYSE:CVE) as stocks trading at a discount to peers while still offering earnings upside.
For income-focused investors, Goldman recommends Bank of America, Schlumberger (NYSE:SLB), and Xcel Energy (NASDAQ:XEL), citing strong dividend growth and yield potential. C
Conversely, stocks that may be vulnerable to earnings misses and potential downside include Lazard (NYSE:LAZ), Marsh & McLennan, and A.O. Smith.