Goldman Sachs Says Buy the Dip: 5 Stocks Too Attractive to Ignore

Goldman Sachs Urges Investors to Buy the Dip in These 5 Stocks

As markets experience turbulence, Goldman Sachs analysts have identified several stocks they believe are undervalued and present compelling buying opportunities. The Wall Street investment bank is advising clients to purchase shares of Alibaba Group, Burlington Stores, Ulta Beauty, Aecom, and Viking Holdings during this period of weakness.

Ulta Beauty: Market Overreaction Creates Opportunity

Following Ulta Beauty's recent earnings report, analyst Kate McShane reiterated a Buy rating, arguing that the stock's nearly 7% decline this year is an overreaction. While acknowledging that investors may be worried about increased promotional activity in the second quarter and a slowdown in the second half, McShane believes the market is missing the bigger picture.

"The beauty space is highly competitive," she wrote, "but we believe Ulta is well positioned to continue gaining share, and company guidance could prove conservative for the year." This suggests that the market's concerns might be overstated, and Ulta's underlying fundamentals remain strong.

Burlington Stores: Operational Levers Point to Growth

McShane also recommends buying the dip in Burlington Stores, the off-price clothing retailer, after its mixed quarterly report in late August. Although second-quarter comparable sales growth of 2% and third-quarter guidance fell short of investor expectations, the company delivered strong margin execution and raised its FY26 guidance on an underlying basis.

"Strong margin flow-through, robust new store productivity, and multiple operational levers should continue to support earnings growth," McShane noted. Shares are down 8% year-to-date, but the analyst sees significant upside as these levers take effect.

Viking Holdings: Long-Term Outlook Remains Bright

Goldman's Lizzie Dove is sticking with her Buy rating on Viking Holdings, the luxury cruise company, despite recent headwinds. While low water levels on European rivers pose a challenge, Dove argues that Viking's differentiated geographic exposure and higher-income customer base will more than offset a choppier cruise environment.

Viking's shares have slumped 20% over the past month, but Dove expects the company to "continue to deliver best-in-class pricing growth and top of best-in-class capacity growth through 2H26 and into 2027." For long-term investors, the current pullback could be an attractive entry point.

Aecom: AI Fears and Legacy Issues Clouding Value

Goldman's analysis of Aecom highlights two primary concerns driving the stock's de-rating: fears that AI could disrupt the Engineering & Design industry and uncertainty surrounding claims tied to two legacy Construction Management projects. However, the bank believes that the majority of the lower multiple is attributable to the Construction Management headwinds, which are likely temporary.

With the stock trading at a discount due to these issues, Goldman sees an opportunity for investors willing to look past the short-term noise.

Alibaba Group: AI and Cloud Leadership Set to Drive Earnings

Alibaba Group remains a top pick at Goldman Sachs. The bank expects the Chinese tech giant to deliver a solid EPS recovery of +64% year-over-year for FY27 and +33% for FY28, with a strong inflection beginning in the September quarter. This growth is expected to be fueled by continued leadership in China's AI + Cloud business, accelerating cloud growth, and a recovery in overall eCommerce profits as losses in quick commerce narrow.

Coinasity's Take

Goldman Sachs' latest "buy the dip" calls span diverse sectors, from retail and luxury cruises to infrastructure and Chinese tech. While each stock faces its own set of challenges, the common thread is that current market weakness may be overdone. Investors should consider these opportunities with a long-term perspective, focusing on the fundamental strengths and growth catalysts that Goldman highlights. As always, diversification and careful research remain essential before making any investment decisions.