Insider Monkey·2026-02-23 09:46Core Insights - The article discusses Goldman Sachs's top growth stock picks amid a shifting market environment, highlighting the performance of growth versus value stocks and the implications for investment strategies going into 2026 [2][3][5]. Market Performance - The S&P 500 Growth Index gained 22.18% in 2025, down from 35.66% in 2024, and was down 2.46% year to date as of February 18, 2026, while the broader S&P 500 was up 0.33% [2]. - Value stocks outperformed growth stocks in early 2025, but a shift occurred in the second half of the year, leading to a strong performance from tech and growth stocks, particularly the Nasdaq Composite, which topped 20% performance [3]. Goldman Sachs Asset Management - Goldman Sachs's Asset and Wealth Management division closed 2025 with a record $3.61 trillion in total assets under supervision, adding $154 billion in the last quarter of 2025 and $469 billion for the entire year [4]. - Hedge funds, including those managed by Goldman, delivered double-digit returns for the second consecutive year, leading to increased investor confidence in their stock picks for 2026 [5]. Stock Selection Methodology - The list of top growth stock picks was created by analyzing Goldman Sachs's portfolio, focusing on stocks with over 10% revenue and earnings growth in the last five years and an upside potential of more than 20% as of February 20, 2026 [7]. Top Growth Stock Picks - Shopify Inc. (NYSE:SHOP): Goldman Sachs holds a stake of $2.12 billion, with 5-year sales growth of 15.08% and earnings growth of 31.58%, indicating a stock upside of 31.54% [9]. - Palantir Technologies Inc. (NASDAQ:PLTR): Goldman Sachs holds a stake of $2.22 billion, with 5-year sales growth of 32.58% and earnings growth of 177%, indicating a stock upside of 46.99% [14].