Shares which have missed out on this yr’s market rally might be strong contenders for a rebound, in accordance with Goldman Sachs. The foremost averages have had a rocky begin to April, however they kicked off 2024 on a robust observe. The S & P 500 jumped greater than 10% within the first quarter. Heading into the second quarter, Goldman looked for buy-rated names in its protection universe that would win massive going ahead. “We see potential for these names to ‘catch-up’ as our economists’ above consensus progress view continues to play out,” the financial institution wrote. Goldman screened for “compounders,” which provide buyers excessive monetary returns, free money circulate era, margin enlargement and gross sales progress. The names needed to meet the next standards: Lag their benchmarks by no less than 5% prior to now yr; Have no less than 5% compound annual progress fee for gross sales between 2023 and 2025, estimated; Have no less than 5% compound annual progress fee for EBIT between 2023 and 2025, estimated; Have free money circulate and internet curiosity margin enlargement between 2023 and 2025; Have excessive single-digit money return on capital invested. Listed here are a couple of of the shares on Goldman’s record: One identify on the record was automotive element producer Aptiv . Most analysts protecting the inventory at the moment have a purchase ranking assigned to the identify, with about 39% upside to the consensus value goal, per LSEG. Barclays analyst Dan Levy reiterated his obese ranking on Aptiv final month. Whereas the inventory has slid 16% thus far this yr and has had a disappointing previous two years, Levy nonetheless believes it presents a sexy funding case. “We predict the bull case is pretty apparent, with APTV’s product portfolio representing among the finest levered to megatrends inside our protection universe of components suppliers,” he wrote. Biopharmaceutical titan Pfizer was one other identify Goldman highlighted as a compounding purchase. Though nearly all of analysts protecting the inventory have it at a maintain ranking, the potential upside for the inventory is sort of 19% from right here, per LSEG. Pfizer has slipped 9% this yr. Earlier this week, the corporate stated its respiratory syncytial virus vaccine confirmed promise of defending adults aged 18 to 59 from getting severely sick. Guggenheim initiated protection of Pfizer with a purchase ranking in February, noting that low investor expectations might soar if a few of the firm’s attention-grabbing pipeline property show profitable in medical trials. “We imagine expectations for Pfizer’s COVID property have now appropriately come down and, whereas a number of of their different largest income mills are additionally dealing with challenges, we see a possibility for near-term estimates to extend if administration is ready to efficiently commercialize giant potential alternatives,” wrote Guggenheim analyst Vamil Divan. Goldman additionally likes potato producer Lamb Weston . Analysts have rated the inventory both a purchase or a robust purchase, and see a mean 40% upside from right here based mostly on consensus value targets, per LSEG. In January, Jefferies deemed the inventory certainly one of its prime picks for 2024 within the U.S. meals sector. “With incremental world processing capability coming on-line, margin enhancers intact, carryover pricing current, steadiness sheet energy, and valuation discounted, we proceed to favor LW’s danger reward given fundamentals vis-à-vis valuation,” wrote analyst Rob Dickerson. Lamb Weston inventory is down 27% yr thus far.