When analyzing the list of undervalued stocks with growth potential provided by Goldman Sachs, one of the companies that stands out is CAE. Despite facing struggles in its civil aviation and defense divisions, analyst Noah Poponak believes that CAE’s stock has been unfairly punished. The stock is currently trading at a sizable discount compared to its peers in the aerospace supply chain. Poponak highlights the undervaluation of CAE’s commercial aerospace asset, emphasizing the growth and margin profile of its Civil segment. With shares down 17% this year, CAE presents an opportunity for investors looking to capitalize on the potential upside of a fundamentally strong company.
Another company on the list that investors should keep an eye on is BJ’s Wholesale Club. Analyst Kate McShane is bullish on BJ’s, citing the company’s burgeoning membership trends, strong traffic, and robust earnings potential. McShane points out the positive quarterly results reported by BJ’s, which demonstrate its continued growth opportunities. With BJ’s shares up about 20% this year and its strategy focused on opening new stores in new markets, the company has the potential to gain market share and maintain its upward trajectory.
Workday, an enterprise cloud management company, is also highlighted as a growth opportunity by analyst Kash Rangan. Rangan praises Workday’s execution of growth initiatives and its ability to hold customers post-pandemic. With shares of Workday up nearly 25% in the past three months, the company’s attractive valuation and potential for long-term growth make it an appealing investment option. Rangan anticipates that Workday could grow into a $20 billion business, driven by financials moving to the cloud and sustained by pent-up demand for its products.
CrowdStrike is identified as a company that is expected to return to 20%+ revenue growth and 30%+ EPS growth over the next 12-24 months. With a focus on transparency and engagement to regain its foothold in the industry, CrowdStrike shows promise for future success. The company’s strategic playbook, as highlighted by earnings commentary, indicates a thoughtful approach to maximizing growth potential. Investors looking for a stock with strong growth prospects may find CrowdStrike to be an appealing choice.
Ducommun, a company with a strong growth outlook, is expected to benefit from the aerospace industry’s ramped-up production to meet increasing demand. Despite facing pressures in its defense business, recent orders and easier comparisons are projected to accelerate growth in that segment. With a focus on aerospace original equipment and aftermarket services, Ducommun presents an opportunity for investors seeking exposure to the aerospace sector’s growth potential.
The list of undervalued stocks with growth potential provided by Goldman Sachs offers investors a range of opportunities to capitalize on companies that are priced below their true value. By carefully analyzing the growth prospects and valuation metrics of these companies, investors can make informed decisions about their investment portfolios. With a combination of strong fundamentals, growth initiatives, and undervaluation, these stocks present compelling opportunities for investors seeking long-term growth and capital appreciation.