Goldman Sachs Names Top Undervalued Stocks to Buy Today

Goldman Sachs (NYSE: GS ), the blue-chip Wall Street firm, has published a list of top stocks it believes are undervalued and those it expects will outperform in the longer term.

Some of these stocks are O’Reilly Automotive (NASDAQ: ORLY ), NetEase (NASDAQ: NTES ), and Tradeweb Markets (NASDAQ: TW ).

Goldman Sachs Believes Tradeweb Markets Sell-Off is Overdone Tradeweb Markets, a top player in electronic trading that has handled assets worth over $3.7 quadrillion since its launch, has slipped by 20% from its highest point last year amid concerns about its growth.

In its report, Goldman Sachs believes that the key fears among investors are a bit overdone.

Investors are concerned about the sustainability of its business model and the long-term risks from tokenization of real-world assets.

GS believes that the company is well positioned to navigate these challenges and that its stock is highly attractive.

It trades at a forward PE ratio of 25, lower than the five-year average of 40.

The most recent results showed that its business continued to thrive, with revenue rising by 21.2% to $617 million.

Its average daily volume for the quarter jumped by 31.4% to over $3.3 trillion, with rates being its biggest business.

Read Also: Popular Magnificent 7 ETF Falls 8.7% as Top Stocks Turn Into Bargains O’Reilly Automotive is a Bargain With Competitive Advantages Goldman Sachs has also pitched O’Reilly Automotive as another undervalued company to buy.

Its stock has slumped by 18% from its highest level on record.

In its report, Goldman Sachs said that the company is a bargain with some competitive advantages.

For example, it had a more robust first quarter than other similar companies.

Also, it has not experienced the same dip in comparable trends as peer companies, aligning it with its outperformance in recent quarters.

At the same time, Goldman’s research found that its store positioning is favorable, as it has minimal competition within a five- to 10-mile radius of its stores. data shows that O’Reilly Automotive has a consensus price target of $294, much higher than the current $90.

This suggests a potential upside of 225%.

Goldman Sachs Sees NetEase Business Being Highly Resilient Meanwhile, Goldman Sachs is recommending that investors buy NetEase, a top Chinese gaming company.

While NetEase stock has jumped by 20% from its lowest point this year, it remains substantially below last year’s high of $160.

Goldman believes that NetEase has some potential catalysts, including new game launches this month and the fact that it is highly undervalued.

The report added that the company has differentiated itself from its peers as a compelling ‘non-AI’ compounder.

NetEase trades with a forward price-to-earnings ratio of 13, lower than its five-year average of 16.5.

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