Core Insights - Goldman Sachs analysts anticipate a rebound in stocks despite a modest pullback due to the ongoing conflict in Iran, suggesting portfolio adjustments are necessary as the war enters its third week [1][2]. Market Overview - The S&P 500 has declined approximately 2.5% since the U.S. and Israel initiated strikes against Iran, primarily driven by rising oil prices and the associated macroeconomic uncertainty [2]. - The Cboe Volatility Index, which measures market fear, has decreased sharply but remains above 20, indicating a jittery market environment [2]. Sector Analysis - Goldman Sachs has shifted its outlook for various sectors due to the war, maintaining a constructive baseline outlook for U.S. equities while recognizing increased downside risks [2][4]. - The firm is overweight in the healthcare and materials sectors, while it no longer recommends stocks related to middle-income consumers or non-residential construction, as these areas are expected to be negatively impacted by rising gas prices, which have surged about 25% in the past two weeks [5][6]. Defensive Positioning - The healthcare sector is viewed as a protective investment during economic slowdowns, having historically outperformed during oil shocks by 1.5 percentage points compared to the broader market [6][7]. - Non-residential construction may face challenges due to elevated energy and transportation costs, alongside increased economic uncertainty [5]. Emerging Opportunities - Outside of defensive sectors, Goldman Sachs sees potential for solar and cybersecurity stocks to benefit from the conflict, as rising oil prices may drive demand for renewable energy and increased cyber threats could enhance the appeal of cybersecurity investments [8][9]. - The hyperscalers, including Alphabet, Microsoft, Amazon, and Meta, may regain leadership in the AI sector as economic conditions evolve, despite current pressures from uncertainty regarding their AI investments [10][11].

Core Viewpoint - Goldman Sachs is facing a securities class action lawsuit due to its role as the lead underwriter in Navan, Inc.'s IPO, where shares have significantly declined in value since the offering [1][3]. Group 1: IPO Details - Goldman Sachs sold over 12.9 million shares of Navan, Inc. at $25 per share during the October 2025 IPO, generating over $920 million in gross proceeds [1][3]. - The shares have since lost nearly 63% of their value, trading as low as $9.20 per share by the time the lawsuit was initiated [1][2]. Group 2: Allegations Against Goldman Sachs - The complaint alleges that Goldman Sachs presented materially misleading information about Navan's business and financial prospects to potential investors [4]. - Goldman Sachs had access to confidential corporate information and was aware of a 39% surge in sales and marketing expenses during the IPO quarter, which was not disclosed in the Offering Documents [4][5]. - The firm is accused of failing to conduct an adequate due diligence investigation, which is critical for establishing a defense against liability for misleading statements [5]. Group 3: Legal Implications - Under Section 11, Goldman Sachs may be held strictly liable for misleading statements unless it can prove due diligence, which the complaint argues it cannot [5]. - Individual officers who sign SEC certifications are held personally responsible for the accuracy of corporate disclosures, extending this accountability to underwriters like Goldman Sachs [6].

Group 1: Company Actions and Market Reactions - Atlassian Corporation announced 1,600 layoffs to "self-fund" its AI pivot, which led to a 2% increase in its stock price after hours [1] - Meta Platforms saw a 3% rise in stock price following its announcements, indicating positive market sentiment towards its AI investments [1] - Block Inc. experienced a significant 23% surge on its announcement day, reflecting strong investor confidence [1] Group 2: Unemployment Predictions and Economic Context - Kalshi's prediction market indicates a 49% chance that U.S. unemployment will exceed 5% this year, up from 37% before the Iran war began [2] - Current U.S. unemployment stands at 4.6%, marking a four-year high, with traders estimating a 24% chance of it surpassing 6% and 13% for exceeding 7% [2] - Goldman Sachs reported that unemployment among college graduates aged 20 to 24 has risen to 8.5%, a 70% increase from its 2022 low, attributing this to AI and efficiency measures [3] Group 3: AI Investment Trends - Companies that are cutting jobs are simultaneously increasing their AI spending, with Meta planning up to $135 billion in capital expenditure for AI this year [4] - Hyperscale companies are expected to collectively invest around $700 billion in AI initiatives [4] - Jefferies analysts noted that Meta's job cuts signal a broader shift towards AI-driven productivity, which could have widespread implications across the internet and software sectors [4]

分组1 - Fluor Corporation (FLR) is expected to experience rekindled sales growth, with analysts projecting a one-year consensus price target of $54.75, representing a 27% increase from the current stock price [1] - The company is well-positioned to benefit from the anticipated increase in electricity demand driven by artificial intelligence technology, which Goldman Sachs predicts will consume 50% more power in 2027 compared to 2024, and could see a 165% increase in electricity usage by 2035 [2][3] - Fluor's current backlog stands at $25.5 billion, with projected top-line growth of 5% this year, accelerating to over 7% next year, indicating a restoration of profit growth [4] 分组2 - Waste Management (WM) operates in a reliable revenue-generating industry, handling approximately 2 billion tons of waste annually, as per World Bank data [9] - The complexity of the waste management industry is increasing due to fewer landfill sites and stricter environmental regulations, enhancing WM's pricing power [11] - WM's single-digit revenue growth is dependable, and the company is capitalizing on opportunities within the industry, including a growing medical waste business projected to expand from $14 billion last year to nearly $28 billion by 2035 [12][11] 分组3 - USA Rare Earth (USAR) is nearing the completion of its rare earth magnet manufacturing facility in Stillwater, Oklahoma, with production expected to start in the first half of this year, initially outputting 5,000 metric tons annually [14] - The company also owns a rare earth element mine in Round Top, Texas, which could yield over 300,000 metric tons of rare earth metals, potentially generating over $100 million in annual output for at least 20 years [16] - The anticipated production launch and the growing demand for rare earth materials could provide significant growth opportunities for USA Rare Earth in the coming years [17]

Core Insights - Goldman Sachs is strategically pivoting towards private credit as a key growth area, focusing on expanding its private equity and alternatives platform through acquisitions and new investment capabilities [1][10] Private Credit Expansion - Goldman Sachs aims to grow its private credit portfolio to $300 billion by 2029, increasing lending to private equity firms and asset managers across Europe, the U.K., and Asia [2][10] - The acquisition of Industry Ventures in January 2026 highlights Goldman's commitment to enhancing its position in private markets and providing clients access to high-growth technology companies [3][10] - A partnership with T. Rowe Price in September 2025 involves a $1 billion deal to co-develop retirement and wealth products, with plans to expand alternative investment offerings for wealthy clients and retirement savers [4][10] Market Position and Performance - Despite concerns regarding private credit, Goldman Sachs is well-positioned to navigate challenges, with expectations of high-single-digit annual growth in private banking and lending revenues [5] - Goldman Sachs shares have increased by 41.8% over the past year, outperforming the industry growth of 22.7% [8] - The company trades at a forward price-to-earnings (P/E) ratio of 13.5X, above the industry average of 12.6X [12] Earnings Estimates - The Zacks Consensus Estimate for Goldman Sachs's earnings in 2026 and 2027 indicates year-over-year growth of 10.5% and 10.6%, respectively, with upward revisions in estimates over the past 30 days [15]

Core Viewpoint - Goldman Sachs identifies four energy stocks with double-digit upside potential and attractive dividends, appealing to both passive income and value-oriented investors as oil prices remain elevated due to geopolitical tensions [2][4][6]. Group 1: Market Context - Brent crude prices have surpassed $100, while West Texas Intermediate is approaching similar levels, leading to increased investor interest in energy stocks [1][4]. - The U.S. attack on Iran has contributed to rising oil prices, prompting a significant uptick in energy stock valuations [4]. Group 2: Investment Opportunities - Goldman Sachs has highlighted four energy companies that are not overbought and possess strong cash flows and rising dividends, making them appealing for investment [4][5]. - The selected companies are rated "Buy" and offer substantial upside relative to Goldman Sachs' price targets [6]. Group 3: Company Profiles - **Diamondback Energy (NASDAQ: FANG)**: Focused on hydrocarbon exploration in the Permian Basin, offering a 2.29% dividend with a price target of $212, indicating a 20% upside [8][9]. - **Ovintiv (NYSE: OVV)**: Engaged in oil and natural gas exploration across the U.S. and Canada, with a 2.20% dividend and a price target of $66, representing a 13% gain potential [10][13]. - **Permian Resources (NYSE: PR)**: Concentrated in the Delaware Basin, trading at 8.5 times earnings with a 3.15% dividend and a price target of $22, suggesting a 14% upside [14][15]. - **Viper Energy (NASDAQ: VNOM)**: Focused on mineral and royalty interests in the Permian Basin, offering a high dividend yield of 4.998% and a price target of $59, indicating a 35% potential gain [17][19].

Group 1 - Gilead Sciences Inc. is recognized as one of Goldman Sachs' top healthcare stocks, with Jefferies initiating coverage with a Buy rating and a $180 price target, highlighting the company's earnings-per-share growth and margin-expansion prospects [1] - The company is well positioned with its HIV franchise and has promising prospects for follow-on products, particularly with the launch of Yetzugo in pre-exposure prophylaxis [1] - Gilead Sciences is making significant progress in its pipeline development, with the phase 3 RAINIER trial for drug povetacicept meeting primary and secondary endpoints for treating immunoglobulin A nephropathy (IgAN) [2] Group 2 - Gilead has entered into a $7.8 billion deal to acquire blood cancer drug developer Arcellx, following a partnership established in 2022 for the commercialization of medicines targeting multiple myeloma [2] - The company is a US-based biopharmaceutical firm focused on discovering, developing, and commercializing innovative medicines for life-threatening diseases, particularly in virology, oncology, and inflammation [3] - Gilead is known for its leadership in antiviral therapies for HIV, Hepatitis B and C, and COVID-19, with a strong emphasis on expanding its global impact, including in Asia [3]

Core Viewpoint - Lazard, Inc. is identified as one of the most undervalued financial stocks to buy, despite recent price target reductions by major banks [1][2]. Group 1: Price Target Adjustments - UBS lowered its price target for Lazard to $48 from $59 while maintaining a Neutral rating [1]. - Goldman Sachs reduced its price target to $46 from $53 and kept a Sell rating, citing a year-over-year increase in investment banking volumes of about 4% but noting potential negative growth due to geopolitical uncertainties [2]. Group 2: Financial Performance - As of February 28, 2026, Lazard reported preliminary assets under management (AUM) of approximately $277.7 billion, which included $8.9 billion in market appreciation and $4.2 billion in net inflows, offset by $0.8 billion in foreign exchange depreciation and a $1.5 billion decrease from the sale of its stake in Edgewater Funds [3]. Group 3: Company Overview - Lazard operates as a financial advisory and asset management firm across various regions, including the Americas, Europe, the Middle East, Africa, and the Asia Pacific, through its Financial Advisory and Asset Management segments [5].

Oil Market Impact - Oil prices are experiencing a significant rise, with reports indicating potential prices reaching $200 per barrel due to tensions in the Strait of Hormuz [2] - Goldman Sachs forecasts that if disruptions continue, oil prices could average $98 per barrel through the end of April, with a more extreme scenario predicting an average of $145 in March and April before declining to $93 by the fourth quarter [3] Technology Sector Implications - The rising oil prices could negatively impact consumer spending, affecting companies like Apple, Microsoft, and Nvidia, which are not directly involved in the oil industry [4] - High gas prices above $4 per gallon may lead consumers to delay purchasing new iPhones, impacting Apple's sales and earnings estimates [6] - Microsoft's gaming division could face challenges as gamers may prioritize spending on fuel and groceries over digital downloads, potentially affecting sales [6] - Nvidia may struggle to meet high gross-margin estimates due to increased supply chain costs driven by rising oil prices, impacting profitability [6]

Industry Overview - The healthcare sector is beginning to recover, with the S&P 500 Healthcare sector rallying nearly 10% over the past six months, significantly outperforming the broader index's 0.26% gain as of March 13 [2] - Global healthcare spending is projected to increase from $11.2 trillion today to $20.5 trillion by 2050, driven by rising demand for health-related products and services [2] - The industry faces challenges such as an ageing population, a projected 10 million-worker shortfall by 2030, and rising costs that outpace GDP growth [3] Digital Health and Innovation - Despite over $100 billion invested in U.S. digital health since 2010, most AI solutions remain unscalable, with over 70% of FDA approvals concentrated in imaging [3] - Experts emphasize the need for coordinated stakeholder action to unlock the full potential of digital solutions and AI in healthcare, highlighting clinical entrepreneurship as a key driver of innovation [4] Investment Insights - Goldman Sachs strategists recommend stocks of companies with tangible, productive assets, which are likely to perform well amid emerging headwinds [5] - There is a market shift towards capacity, networks, and infrastructure assets that are costly to replicate and less exposed to technological obsolescence [6] - Morgan Stanley strategists note a rotation from high-flying tech stocks to sectors with discounted valuations, including healthcare [7] Company Highlights - Pfizer Inc. (NYSE:PFE) is highlighted as a top healthcare stock, with a Goldman Sachs equity stake of $997.18 million. Positive phase 2 trial results for its tri-specific antibody tilrekimig suggest a competitive edge in the immunology sector [13][14][15][16] - Gilead Sciences, Inc. (NASDAQ:GILD) is another top pick, with a Goldman Sachs equity stake of $1.07 billion. The company is well-positioned with its HIV franchise and has made significant progress in pipeline development, including a $7.8 billion acquisition of Arcellx [17][19][20]