Goldman Sachs Adds 3 Stocks To 'Conviction List,' Flags 5 Market Trends To Monitor In 2025 - Belden (NYSE

Goldman Sachs research kicked off the new year with bold stock picks and a spotlight on five investment themes poised to shape markets in 2025.

What Happened: In a note shared Thursday, the analyst team led by Steven Kron shuffled its “Conviction List” — a carefully curated portfolio of top investment ideas.

Goldman Sachs added Belden Inc. (NYSE:BDC), Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH), and Uber Technologies Inc. (NYSE:UBER) to the list. These companies replaced Fox Corp (NASDAQ:FOXA), Parker Hannifin Corp. (NYSE:PH), and TPG Inc. (TPG).

Why It Matters: Industrial tech is back in vogue. Analyst Mark Delaney sees Belden riding a cyclical industrial recovery while expanding its high-margin software solutions business. Delaney models earnings per share (EPS) above consensus estimates for both 2025 and 2026, making this a standout pick in the industrial space.

Cruises are sailing into a stronger 2025. Analyst Lizzie Dove cites accelerating Net Purchase Intent (NPI) data and cost savings from a 2023 management shuffle. Dove expects Norwegian to widen its yield-to-unit-cost spread by 2.5 percentage points, bringing its valuation closer to peer Royal Caribbean Cruises Ltd. (NYSE:RCL).

Analyst Eric Sheridan remains bullish on Uber despite skepticism over its mobility business and the rise of autonomous vehicles. He forecasts a robust 39% compound annual growth rate (CAGR) in adjusted EBITDA from 2023-2026. According to the bank, Uber is set to deliver $3.50 in GAAP EPS by 2026—a projection that sits 7% above consensus. Goldman Sachs holds a 12-month price target of $96 on Uber stock, implying a nearly 60% upside from current market levels.

Key Themes For 2025: AI, M&A, Deglobalization, And More

The investment bank also outlined five key themes to track as we enter the new year.

Artificial Intelligence: Goldman's Kash Rangan expects AI investment to shift in 2025, moving from infrastructure spending to platforms and applications. In a recent note, Rangan highlighted the increasing integration of AI into enterprise software. Stocks with exposure to this trend include Nvidia Corp. (NASDAQ:NVDA), Snowflake Inc. (NYSE:SNOW) and Teradyne Inc. (NASDAQ:TER).

De-regulation, M&A, And Capital Markets Rebound: Regulatory changes under a potential second Trump administration could accelerate M&A activity, Goldman analysts say. Financial firms like Citigroup Inc. (NYSE:C), Evercore Inc. (NYSE:EVR), and S&P Global (NYSE:SPGI) are positioned to benefit. Analyst Richard Ramsden recently indicated a more favorable environment for banks and financial advisors.

Re-powering America: Carly Davenport flagged the surging power demands of data centers and AI compute, noting this trend is driving sustained growth in utilities capex. Her team stressed the importance of energy infrastructure to support the transportation electrification. Stocks like DBA Sempra (NYSE:SRE) is Goldman’s top pick here.

Deglobalization: The era of tariff wars is far from over. Jan Hatzius and economics team expect a 20 percentage point hike in tariffs on Chinese imports and new duties on European autos and Mexican EVs. Companies like Vulcan Materials Co. (NYSE:VMC) and Woodward Inc. (NASDAQ:WWD) are well-positioned to adapt to supply chain disruptions caused by these policies.

Resilient US Consumers: Despite macro concerns, Goldman Sachs continues to paint another strong year for U.S. consumers. Discretionary cash flow is expected to grow by 5.2% in 2025, up from 4.4% in 2024, supported by higher savings rates. Stocks to watch include Norwegian Cruise Line, Uber, Burlington Stores Inc. (NYSE:BURL), and Pinterest Inc. (NYSE:PINS).

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