Goldman Sachs identifies five undervalued stocks for growth potential

Goldman Sachs has identified five undervalued stocks that exhibit significant growth potential, as highlighted in a recent analysis. Among these, CAE is noted for its undervalued position in the commercial aerospace sector, despite challenges in its defense business. Analysts believe that the current valuation does not reflect the growth and margin potential of its Civil segment, which could lead to a rebound in its stock price. BJ's Wholesale Club is recognized for its strong performance, with shares up approximately 20% this year. Analyst Kate McShane emphasizes that the company is well-positioned for continued growth, driven by strong traffic trends and an improved product assortment. The outlook for BJ's remains positive, suggesting further market share gains in the future. Workday is also highlighted for its growth initiatives, with expectations of evolving into a $20 billion business as financial services transition to cloud solutions. The company has maintained high customer retention rates post-pandemic, and there is a belief that demand for strategic projects related to its products will support long-term growth. Lastly, Ducommun is expected to benefit from increased production in the aerospace sector, as original equipment manufacturers ramp up to meet rising demand. Overall, these companies are positioned to capitalize on their respective market opportunities, indicating a favorable investment outlook according to Goldman Sachs analysts.