Goldman Sachs Lists Stocks for Stable Growth in Tough Economy

On August 5, 2024, global markets experienced a significant sell-off, driven by investor fears of a potential recession following a disappointing jobs report for July. The S&P 500 and Dow Jones Industrial Average recorded their worst trading sessions in nearly two years, while Japan's Nikkei 225 faced its most severe decline since the infamous "Black Monday" in 1987. This downturn has raised alarms about the stability of the U.S. economy and its implications for global markets. In response to these economic concerns, Goldman Sachs has identified a selection of stable growth stocks that may offer investors a safer haven during this turbulent period. The firm emphasizes that these stocks could perform well as economic policies become increasingly uncertain. Notably, the information technology sector features prominently in Goldman’s recommendations, with 14 stocks listed, although only five have shown gains this year. Among the highlighted companies, tech giants International Business Machines (IBM) and F5 have demonstrated resilience, with their shares rising by over 14% and around 5%, respectively, in 2024. Both companies reported second-quarter earnings that exceeded market expectations, contributing to their positive performance. Goldman Sachs projects a 12% growth in earnings per share for F5 and a 5% growth for IBM in 2024, indicating strong potential for these stocks. Additionally, Domino's Pizza is noted for its robust growth estimates, with a consensus of 10% for earnings per share and 7% for revenue. CEO Russell Weiner expressed confidence in the strength of the U.S. business, citing high value. However, other stocks on Goldman’s list, such as Sirius XM and Zoetis, have not performed as well this year, highlighting the varied landscape of market resilience amid economic uncertainty.