On Thursday, Goldman Sachs made adjustments to its US Conviction List, a roster of stocks the firm believes will outperform. Belden Inc . (NYSE:BDC), currently trading at $112.61 with a market cap of $4.5 billion, Norwegian Cruise Line Holdings Ltd . (NYSE:NYSE:NCLH), and Uber Technologies Inc . (NYSE:NYSE:UBER) were added to the list. Concurrently, the firm removed Fox Corporation (NASDAQ:FOXA), Parker Hannifin Corporation (NYSE:NYSE:PH), and TPG Inc. (NASDAQ:TPG).
The changes reflect Goldman Sachs' evolving view on companies poised for strong performance. The addition of Belden, a global leader in signal transmission solutions showing impressive performance with a 46% return over the past year and strong financial health metrics according to InvestingPro, Norwegian Cruise Line, a major cruise operator, and Uber Technologies, the ride-hailing giant, signifies the firm's confidence in these companies' potential.
The announcement included a brief overview of the reasons behind the inclusion of the new stocks. For Belden, InvestingPro data reveals that three analysts have revised their earnings upwards for the upcoming period, with analyst targets suggesting potential upside. Market commentary and a discussion of key themes for the upcoming year were also provided. Goldman Sachs reviewed the performance of the Conviction List and highlighted upcoming earnings and non-earnings catalysts that could affect the companies' performances.
The Conviction List is closely watched by investors as it represents Goldman Sachs' top investment ideas, singled out for their potential to provide significant returns. The inclusion of a company on this list often draws attention to its stock and can influence investor sentiment.
The adjustments to the Conviction List are part of Goldman Sachs' regular review process, ensuring the list remains representative of their best investment ideas in changing market conditions. The firm's focus on upcoming themes and catalysts aims to provide investors with insight into potential market movements and company-specific events that could impact stock performance.
In other recent news, Belden Inc. has been experiencing strong financial performance, with recent Q3 results surpassing expectations. The company's earnings and revenue reached impressive heights, with an 8% sequential increase in revenue to $655 million and a 13% sequential rise in earnings per share (EPS) to $1.70. This performance was largely driven by a return to organic revenue growth in the Americas region and strategic acquisitions such as Voleatech.
Analysts from Loop Capital, Benchmark, and Truist Securities have all maintained a Buy rating on Belden, raising their price targets to $155, $130, and $136 respectively. This optimism is underpinned by Belden's strong sales growth, particularly in its Smart Infrastructure business, and its clear trajectory towards reaching its $8 EPS target set for 2025.
In addition, Belden's orders have shown consistent growth, rising 8% sequentially and 28% year-over-year, marking the fourth consecutive quarter of growth. Looking ahead, Belden has forecasted Q4 revenues to be between $645 million and $660 million, with a projected year-over-year EPS increase of 11-18%.
Furthermore, recent acquisitions such as Precision Optical and Voleatech have contributed to Belden's revenue and strategic focus on key verticals with strong growth potential. Precision Optical contributed $34.5 million in Q3 revenue, while the Voleatech acquisition generated less than $1 million.
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