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

TechFlow reports, according to Chaoxiang Research, Goldman Sachs' September 1 research report noted that the US High Conviction List was updated this month, with Vertex Pharmaceuticals added and Interactive Brokers Group removed, maintaining 23 stocks on the list. All gains in the US stock market in August were concentrated in the first two trading days of the month, after which it entered a summer consolidation phase, and Nvidia's strong earnings failed to break the deadlock. The 10-year Treasury yield rose 9 basis points compared to the beginning of the month, Brent crude oil remained largely flat, while gold, silver, and Bitcoin rose 9%, 22%, and 24%, respectively.

Vertex was the biggest highlight of the month, with Goldman Sachs identifying five $10 billion-level commercial opportunities for it: cystic fibrosis, pain, kidney disease, hematology, and the endocrinology segment via its proposed acquisition of Crinetics. Market expectations for the peak sales of povetacicept in IgAN ($3.2 billion) are significantly lower than Goldman Sachs' projection ($5.8 billion). Outperformers Estée Lauder and DoorDash gained 5.3% and 18.1% in August, respectively, while TPG raised its FRE estimate by approximately 10% following a strong second quarter. Viking Holdings and Applied Materials faced pressure due to elevated expectations. The list is built on bottom-up fundamental analysis, spanning six major sectors: consumer, financials, healthcare, industrials, resources, and technology.