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Goldman Sachs named a slew of stocks that are well positioned for earnings growth, according to the firm’s analysts. The Wall Street investment bank says stocks like Walmart are compelling and have plenty room to grow. Other buy-rated names screened by CNBC Pro include: Ollie’s, Charles Schwab, T-Mobile and Porch Group. Ollie’s Bargain Outlet The discount retailer is firing on all cylinders following its strong earnings report in August, where it beat on the top and bottom line, Goldman said. Analyst Kate McShane said she sees a number of positive catalysts ahead for Ollie’s, and said it has an ability to grow unit volume, a robust product pipeline and new customers from its membership program, Ollie’s Army. “Management stated that their new June Army Night event was a success, as it surpassed all expectations and drove record customer engagement,” she wrote. In addition, Ollie’s continues to take share as rivals close stores and file for bankruptcy. “Strong customer acquisition and accelerating deal flow drive increasing market share and earnings power,” she said. Shares are up about 22% this year. Walmart McShane also said investors should keep buying shares of the retail giant, following Walmart’s earnings report in August. “While results came in above expectations on the top line, gross margin came in below expectations, with the company realizing lower-than-anticipated markups on US inventory,” McShane wrote. Still, Goldman expects Walmart is well positioned for market share gains as headwinds abate and profitability rises. Other positive catalysts include the back-to-school season and rising e-commerce sales, it said. McShane also anticipates the company will have superior execution managing tariffs. “We believe WMT is well positioned to continue driving solid earnings growth in 2025, supported by market share gains given its compelling proposition for value and convenience, while its profitability profile should also improve,” she went on to say. The company’s stock has climbed more than 10% so far this year. Porch Group The homeowner and consumer services software platform was recently initiated with a buy rating by analyst Adam Hotchkiss. While the shares of many top software names have struggled recently, Porch Group is well positioned for growth, according to the analyst. “While the business has gone through significant challenges over the past 4-5 years, much of which occurred outside of the company’s control, we believe management has effectively positioned the business for profitable growth while mitigating risk,” he wrote. Porch executives are finding unique and creative ways to invest and gain share despite existing home sales that are around multiyear lows, Goldman said. The firm is also particularly bullish on Porch’s foray into homeowner’s insurance, with Hotchkiss calling it a “large opportunity in a durable and growing” market. Shares of the company are up a whopping 273% this year. Charles Schwab “…we think there is more upside potential as EPS growth acceleration dynamics remain firmly intact, supported by 1) NII [net interest income] upside with transactional cash/deposit growing and meaningful reduction in supplemental borrowings positioning SCHW to begin reinvesting securities portfolio and grow the balance sheet likely by 4Q25; 2) Recent hedging action partially reducing sensitivity to short-term rates. …” Walmart “While results came in above expectations on the top line, gross margin came in below expectations, with the company realizing lower-than-anticipated markups on US inventory. … We believe WMT is well positioned to continue driving solid earnings growth in 2025, supported by market share gains given its compelling proposition for value and convenience, while its profitability profile should also improve.” Ollie’s “Strong customer acquisition and accelerating deal flow drive increasing market share and earnings power. … Management stated that their new June Army Night event was a success, as it surpassed all expectations and drove record customer engagement.” Porch Group “While the business has gone through significant challenges over the past 4-5 years much of which occurred outside of the company’s control, we believe management has effectively positioned the business for profitable growth while mitigating risk. … Large opportunity in a durable and growing Homeowners insurance market.” T-Mobile “Industry leading growth, but at premium valuation. … TMUS should realize an industry-leading 7% EBITDA 5-year CAGR reflecting the company’s market leadership in mobile and emerging growth in fiber. … We see TMUS’ relative valuation as justified reflecting TMUS’ faster EBITDA growth and market leading service revenue to FCF conversion.”
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