Goldman Sachs has identified 23 consumer-facing stocks it considers undervalued. The firm sees these laggards as strong opportunities amid shifting market conditions.
Earnings growth across major technology companies is expected to slow next year. Big tech stocks have shown signs of weakness after a long period of strong performance.
Goldman Sachs analysts recommend investors look beyond the technology sector for returns. Consumer-oriented companies that have underperformed may offer better value.
The 23 stocks highlighted by the firm have lagged the broader market. Their lower valuations could provide upside as earnings growth decelerates elsewhere.
Slowing earnings growth is a key factor driving the recommendation. Tech companies face tougher comparisons after several years of rapid expansion.
Consumer-facing businesses may benefit from steadier demand and more predictable revenue. These sectors have trailed tech but could close the gap as conditions change.
The shift reflects a broader rotation away from high-flying technology names. Investors are increasingly searching for overlooked opportunities in other parts of the market.
Goldman Sachs maintains a positive outlook on select consumer stocks. The firm believes these names offer attractive risk-reward profiles for the coming year.
