Goldman Sachs says consumer conditions are likely to be strong in 2025, so several stocks could rise. “We forecast that as (disposable personal income) continues to grow, consumers will remain strong despite slower growth and an easing rise in interest rates,” analysts at the firm wrote in a note to clients this week. Goldman Sachs expects to remain largely unchanged this year Spending growth will slow to 2.3% from 3.6% in 2024, and said it will benefit from lower energy costs, slower health care spending growth and low-single-digit food inflation. This is expected to drive an acceleration in discretionary cash inflows from US consumers of 4.9% in 2025 (+4.2% in 2024), which should support a healthy discretionary spending backdrop as well as higher savings. With this in mind, Goldman Sachs analysts list a few names they think are most likely to benefit in the new year. Here are some of the stocks rising. The firm’s analysts note that investors remain concerned about whether Wingstop has enough competitive drivers to deliver. Positive same-store sales growth this year, but the restaurant chain may still grow, they wrote in the report: “With increased WING advertising spend and a new multi-year partnership with the NBA to supplement advertising during NFL games, we Continue to see significant brand awareness opportunities. “In addition, the company continues to maintain its advantage over its peers in the digital space, with more than 45 million unique users in its customer base, digital sales now account for 70% of total sales, and the company has launched its proprietary technology Platform MyWingstop (offers hyper-personalization to digital guests). Most analysts on Wall Street share a similar view, with Goldman Sachs also bullish. In fact, 15 of the 25 analysts covering Wingstop are negative on the company, according to LSEG. With a Strong Buy or Buy rating, the stock’s average price target reflects a 35% upside potential of nearly 11% in 2024. Dick’s Sporting Goods is another name on Goldman’s list. The company (Dick’s Sporting Goods) significantly outperformed the market last year, surging more than 55%, and the stock is likely to only go higher thereafter. Notably, Goldman Sachs said Dick’s has the potential for multiple expansions in the future, noting that the stock has the potential to do so. Revenue growth has been achieved through its GameChanger app, which provides scores and live video streaming to teams and fans in the United States. “As DKS continues to grow its gaming business,” although digital advertising dollars may continue to flow from Search shifts to retail, but we see opportunities for incremental growth in retail media networks, which, similar to other retailers, will have a greater impact on (EBIT) given its higher margins,” the company said. said. Wall Street, however, is divided on the name, while 14 of the 29 analysts covering Dick’s have a Strong Buy or Buy rating, according to LSEG. Rating: Hold. Consensus price target: Chipotle shares are up nearly 32% in 2024, but have experienced a double-digit retracement from their highs, Goldman said. “Attractive” opportunity. Additionally, analysts say Chipotle will be one of the major beneficiaries along with Sweetgreen if the return to offices accelerates. “We believe CEO Scott Boatwright (formerly Operating Officer) will be one of the major beneficiaries,” Goldman Sachs analysts said. Chief Executive Officer and Chief Financial Officer Adam Rymer’s extensive previous experience at Chipotle will allow the company to continue to grow and build on the improvements made under (former CEO) Brian Niccol’s leadership, which they noted they believe will be achieved through ” Several key ways are working, such as through process improvements and technology investments. Wall Street is mostly bullish on the restaurant, with 26 of 36 analysts giving it a Strong Buy or Buy rating, according to LSEG. The target is around $67, implying more than 19% upside ahead.
