Goldman Sachs on Monday updated its popular “U.S. Convict List – Director’s Cut,” adding five stocks to a curated selection of buy-rated stocks from its U.S. coverage.
Five companies added to the June update: Edwards Lifesciences Corp (NYSE:), Enphase Energy (NASDAQ:), Sempra Energy (NYSE:), Teradyne (NASDAQ:) and Property in Brixmore (NYSE:) Group.
For Edwards Lifesciences, the company’s optimism is based on the company’s successful ramp-up and market expansion potential for its transcatheter aortic valve replacement (TAVR) product line. The growth is expected to be driven by treating a wider range of patients, including younger asymptomatic patients.
“Look for new products and expand TAM to deliver accelerating revenue growth in 2025, and deliver sales and EPS estimates of 2% to 8% above Factset consensus for 2025 to 2027,” the analysts wrote in a note.
Enphase Energy’s inclusion comes as Goldman forecasts a recovery in earnings, especially in the crucial California market. The firm notes that the previous cycle of regulation-induced inventory drawdowns is coming to an end.
“In addition, the company’s still nascent home battery segment could benefit from changing economics of residential electricity consumption that will make it more profitable to store electricity at home rather than sell it back to the grid at certain times of day,” Goldman said in a note.
Meanwhile, company analysts are also optimistic about Sempra Energy’s growth prospects as its Texas utility Oncor is expected to benefit from the state’s business, infrastructure and population growth.
Analysts also highlight the company’s capital spending growth prospects and its robust liquefied natural gas (LNG) pipeline, which is expected to support the expansion of its regulated utility businesses.
Finally, automated testing equipment (ATE) developer Teradyne was included on Goldman’s condemnation list as analysts expect to see a turnaround in sales, mainly due to inventory depletion and an upcoming positive earnings cycle.
The firm also cites potential revenue declines from recovering sales to a major customer, new product initiatives, “and a cyclical recovery in the robotics business (10% of sales) should also provide a tailwind to earnings,” the analysts noted.
While these five stocks were added, the company names First Solar (NASDAQ:), Southern Company (NYSE:), Target and Simon Property Group (NYSE:) were removed as part of the June update.