Goldman Sachs Research Report Analysis: Updated List of 23 Highest Conviction Buys, Vertex Added, Interactive Brokers Removed

By Rita

In September, Goldman Sachs updated its U.S. High Conviction List: Vertex Pharmaceuticals was added, Interactive Brokers Group was removed, and the list remains at 23 stocks.

On September 1, Goldman Sachs released its monthly report noting that all S&P gains in August were concentrated in the first two trading days, with mega-cap tech earnings continuing to meet market expectations. Thereafter, the market entered a summer consolidation phase with ambiguous direction for risk assets; even NVIDIA's strong earnings failed to break the deadlock. The 10-year Treasury yield rose slightly by 9 basis points from the beginning of the month, Brent crude oil remained roughly flat, while gold, silver, and Bitcoin rose 9%, 22%, and 24%, respectively. Goldman Sachs believes the market is currently in a catalyst vacuum, and true opportunities lie within companies undergoing substantive changes that could set a new direction for Q4.

Vertex Added: Five Potential $10 Billion Opportunities Build Pipeline Value

Vertex stands out as the biggest highlight on this month's list. Goldman Sachs analyst Salveen Richter believes the large-cap biotech company is advancing five potential $10 billion-scale commercial opportunities.

Cystic fibrosis is Vertex's traditional stronghold, where the company continues to drive a series of innovations to maintain competitive moats. In pain management, Journavex demonstrates strong commercial momentum for acute pain, with Phase III data for diabetic peripheral neuropathy expected to be reported after Q2 2027. Regarding kidney diseases, multiple pipeline assets are advancing; interim Phase III data for inaxaplin in APOL1-mediated nephropathy is expected in early 2027. Richter is optimistic about the launch prospects of povetacicept, a best-in-class drug for IgA nephropathy, with a PDUFA date of November 30. In hematology, the gene-editing therapy Casgevy, developed in collaboration with CRISPR Therapeutics, is also ready for launch.

Vertex's proposed acquisition of Crinetics Pharmaceuticals will establish a fifth commercial pillar in the endocrinology space. Richter notes that current market peak sales estimates for povetacicept in IgAN ($3.2 billion) fall significantly short of Goldman Sachs' $5.8 billion estimate, while estimates for Journavex in acute pain ($2.3 billion) trail Goldman Sachs' $3.9 billion forecast. The market has not yet assigned pipeline value to inaxaplin, the DPN indication, and earlier-stage projects, meaning this potential remains underpriced.

Three Outperforming Stocks

Estée Lauder rose 5.3% in August. Following strong Q4 results, Goldman Sachs analyst Bonnie Herzog raised 2027–2029 EBIT estimates by approximately 4%, lifting the price target by $12 to $112. Organic sales grew 5%, beating market consensus by nearly 200 basis points, with fragrance and skincare segments growing 10% and 7%, respectively.

DoorDash gained 18.1%. Analyst Eric Sheridan reaffirmed a Buy rating following robust Q2 results, highlighting three positive signals: improvement in unit economics across all businesses, management's comment that grocery and retail segments could achieve positive gross profit growth in H2 2026, rising DashPass paid conversion rates, and sustained growth in total order value for grocery and retail outpacing overall platform growth.

TPG advanced. This alternative asset manager delivered strong Q2 results, prompting analyst Alex Blostein to raise FRE/earnings per share estimates to approximately 10% above market consensus. Four key drivers are aligning: acceleration in capital raising breadth, resilient investment performance (particularly in private equity), improving credit deployment opportunities, and accelerating transaction activity. Blostein forecasts base fee revenue growth exceeding 20% in both 2026 and 2027, positioning TPG as one of the fastest-growing names in his alternative asset management coverage.

Five Stocks Under Pressure

Viking Holdings dropped 17.5%. Analyst Lizzie Dove pointed out that low water levels in Europe disrupted itineraries and triggered customer credit limits, making near-term negative sentiment difficult to dissipate. However, Dove maintains that fundamentals remain solid, pricing outperformed expectations, and the current risk-reward ratio is attractive.

Applied Materials fell 9.6%. Despite solid Q2 results and guidance above market consensus, shares faced pressure. Analyst Jim Schneider noted the issue stems from overly elevated market expectations rather than fundamental changes. Schneider argues that the strong results laid the groundwork for accelerated WFE growth in 2027, with Applied Materials poised to benefit from increased DRAM and leading-edge logic spending.

Loar Holdings, Celestica, and Delta Air Lines also experienced varying degrees of decline in August, with analysts maintaining Buy ratings, arguing that short-term volatility does not alter the long-term investment thesis.

List Construction Follows Bottom-Up Fundamental Logic

Goldman Sachs' High Conviction List is curated by the Americas Research Investment Review Committee from analyst-rated Buy recommendations, maintaining a size of 20 to 25 stocks. The list does not express thematic or factor views but is grounded in bottom-up fundamental analysis. The 23 stocks span consumer, financials, healthcare, industrials, natural resources, technology, and other sectors, each possessing three characteristics: analyst high conviction, differentiated views, and high risk-adjusted returns.

The addition of Vertex reflects pipeline value and a dense upcoming catalyst calendar that the market has not fully priced in. Conversely, the removal of Interactive Brokers demonstrates that the list is a dynamically adjusted portfolio rather than a static recommendation list.

Disclaimer

This article compiles and interprets third-party broker research reports (Goldman Sachs, September 1, 2026) by TechFlow Research, integrated with publicly available market information. The ratings, price targets, earnings forecasts, and related judgments cited herein represent the views of the respective broker's analysts, reflect solely the stance of their institutions, do not constitute the views of TechFlow Research, and should not be construed as investment advice.

Investments involve risks, and decisions must be made independently. This article should not serve as the basis for buying or selling any securities.