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Investing.com - Goldman Sachs has updated its Directors Cut conviction list for September, adding four new stocks while removing two others from its selection of top investment ideas.
The investment bank added Cadence Design Systems (NASDAQ:CDNS), Valero Energy (NYSE:VLO) - trading near its 52-week high of $155.12 with a market cap of $47.8 billion and impressive 29% YTD return - McDonald’s (NYSE:MCD), and Walmart (NYSE:WMT) to its closely watched list that represents the firm’s highest-conviction stock recommendations. InvestingPro data shows Valero maintains a 2.9% dividend yield with a 37-year streak of dividend payments.
Goldman simultaneously removed Viper Energy (NASDAQ:VNOM) and Insmed (NASDAQ:INSM) from the Directors Cut list, according to the firm’s September update.
The Directors Cut list represents Goldman’s selection of stocks that its research analysts believe offer the strongest potential for positive returns based on their fundamental analysis.
Goldman Sachs regularly updates this conviction list to reflect changing market conditions and evolving views on individual companies’ prospects.
In other recent news, Valero Energy Corporation reported stronger-than-expected earnings for the second quarter of 2025. The company’s earnings per share (EPS) reached $2.28, surpassing the forecast of $1.76. Additionally, Valero’s revenue exceeded expectations, coming in at $29.89 billion against a projected $27.97 billion. Despite these positive financial results, the stock experienced a pre-market decline of 1.17%, attributed to investor concerns over operational challenges.
In analyst coverage, Raymond James adjusted its price target for Valero Energy to $170 from $172, while maintaining a Strong Buy rating. The firm believes Valero is well-positioned to benefit from solid long-term U.S. refining conditions, despite a complex near-term macroeconomic environment. These developments reflect the ongoing dynamics and considerations for investors evaluating Valero Energy’s performance and prospects.
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