Goldman Sachs Updates U.S. Conviction List with New Additions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 02 2026
0mins
Should l Buy COP?
Source: seekingalpha
- New Additions: Goldman Sachs updated its U.S. conviction list at the start of the month, adding ConocoPhillips (COP) and Loar Holdings (LOAR), while removing Huntington Ingalls Industries (HII), MSG Entertainment (MSGE), and Valero Energy (VLO), indicating a proactive approach to new investment opportunities.
- ConocoPhillips Outlook: Analysts highlighted that ConocoPhillips is on the verge of a positive free cash flow inflection, expected to transition over the next three years from heavy project investments to an ‘investment harvesting’ phase, with major projects coming online and reduced capex, significantly improving its financial health.
- Loar Holdings Growth Potential: As an aerospace parts supplier, Loar Holdings is recognized as a high-quality Aerospace & Defense ‘earnings compounder,’ with strong margins and free cash conversion, positioned well for long-term growth and margin expansion in its early stages.
- Market Reaction: Goldman’s update reflects keen insights into market dynamics, particularly in the energy and aerospace sectors, prompting investors to monitor these companies' performances and potential returns in the evolving economic landscape.
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Analyst Views on COP
Wall Street analysts forecast COP stock price to fall
19 Analyst Rating
15 Buy
3 Hold
1 Sell
Moderate Buy
Current: 127.190
Low
98.00
Averages
115.67
High
133.00
Current: 127.190
Low
98.00
Averages
115.67
High
133.00
About COP
ConocoPhillips is an exploration and production company. Its Alaska segment primarily explores for, produces, transports and markets crude oil, natural gas and NGLs. The Lower 48 segment consists of operations located in the 48 contiguous states in the United States and the Gulf of Mexico. Canadian operations consist of the Surmont oil sands development in Alberta, the liquids-rich Montney unconventional play in British Columbia and commercial operations. The Europe, Middle East and North Africa segment consists of operations principally located in the Norwegian sector of the North Sea, the Norwegian Sea, Qatar, Libya, Equatorial Guinea and commercial and terminalling operations in the United Kingdom. Asia Pacific segment has exploration and production operations in China, Malaysia, Australia and commercial operations in China, Singapore and Japan. Other International segment includes interests in Colombia as well as contingencies associated with prior operations in other countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Chip Innovation: Arm's stock rose 13% after unveiling its first in-house chip, projecting $15 billion in revenue by 2031, highlighting its strong growth potential in the semiconductor market.
- Acquisition Deal: Terns Pharmaceuticals saw shares gain over 5% after Merck agreed to acquire the biopharma company for $53 per share in cash, valuing the deal at $6.7 billion, expected to close in Q2.
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- Negotiation Dynamics: Trump reiterated that the U.S. is in negotiations with Iran, despite Tehran denying direct talks with Washington, creating a contradictory narrative that raises market concerns about future developments.
- Market Reaction: Following the announcement of Trump's peace plan, Asian stock markets surged, particularly in South Korea, while European indices are also expected to open higher, reflecting investor expectations for improved geopolitical conditions.
- Corporate Moves: Meta is granting stock options to key leaders to retain talent amid increasing pressure in the artificial intelligence sector, although CEO Mark Zuckerberg is not included in this plan, indicating potential implications for the company's long-term strategic direction.
See More
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- Peace Plan Delivery: According to The New York Times, the U.S. has sent a 15-point peace plan to Iran through Pakistan, aiming to facilitate negotiations between the warring parties, which could provide a new opportunity for conflict resolution.
- Military Deployment Preparations: Concurrently, The Wall Street Journal reported that the Pentagon is preparing to deploy about 3,000 soldiers from the Army's 82nd Airborne Division to the Middle East, a military move that could escalate regional tensions and further impact global markets.
- Global Energy Emergency: The Philippines has become the first country to declare a 'national energy emergency' due to the ongoing conflict, indicating that the conflict poses a growing threat to global energy supply chains, potentially leading to fluctuations in international oil prices.
See More
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- Negotiation Dynamics Shift: Trump indicated he had retracted threats to strike Iranian energy infrastructure based on negotiation progress, which could alter market expectations for future oil prices, despite Iran denying direct talks with the U.S.
- Supply Disruption Impact: Goldman Sachs highlighted that the current disruption in oil supplies represents the largest shock in decades, significantly affecting global supply shares and increasing market uncertainty, prompting investors to hedge against potential worst-case scenarios.
- Geopolitical Risk Premium: According to Goldman, short-term crude price movements are driven more by shifts in perceived worst-case probabilities rather than changes in the fundamental outlook, with expectations that flows through the Strait of Hormuz will normalize over a four-week period, further influencing oil price trends.
See More
Iran Conflict Impacts Asia-Pacific Markets
- Market Reaction: The latest flare-up in the Iran conflict has severely impacted export-reliant markets in South Korea and Japan, with benchmark indexes sharply declining, reflecting investor concerns over surging energy costs and diminished risk appetite that could undermine corporate earnings and economic growth.
- U.S. Presidential Remarks: President Trump stated that the U.S. and Iran are currently negotiating, despite Tehran denying any direct talks with Washington, which has lifted market sentiment and may provide a short-term rebound for Asia-Pacific markets.
- Australian Market Performance: The S&P/ASX 200 index in Australia rose over 1.26% in early trading, indicating a positive response to Trump's comments, potentially attracting more investor interest in the market.
- Oil Price Fluctuations: West Texas Intermediate crude futures fell by 3.92% to $88.73 per barrel during early Asian trading hours, reflecting market concerns over the ongoing Iran conflict, which may further impact the global economy and energy markets.
See More
Investors Should Cautiously Navigate U.S.-Iran Conflict
- Market Uncertainty: CNBC's Jim Cramer cautioned investors that trading on headlines related to the U.S.-Iran conflict may be a waste of time and money due to mixed signals and unpredictable market conditions, advising a hands-off approach to mitigate risks.
- Oil Stock Surge: Reports of the Pentagon nearing plans to deploy thousands of troops to the Middle East led to Exxon Mobil and Chevron shares rising nearly 3% and 1%, respectively, indicating market concerns over potential supply disruptions in energy.
- Financial and Retail Stocks Rally: Despite market volatility, JPMorgan and Walmart saw their shares increase by nearly 1%, reflecting investor optimism about a potential resolution to the conflict; however, Cramer noted the oddity of such simultaneous rallies, suggesting possible market misjudgments.
- Overall Market Weakness: The S&P 500 fell 0.3% on Tuesday, contrasting with a 1.3% rise on Monday, which Cramer attributed to fear-driven trading, emphasizing the need to monitor whether the Iranian regime will support Trump's claims to avoid further market instability.
See More
