Comeback candidates: Goldman loves these underperforming stocks with strong fundamentals

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Lamb Weston Holdings Inc,Pfizer Inc,Aptiv PLC

Goldman Sachs shared its list of buy-rated stocks that have the potential to come back big time.

Stocks that have missed out on this year's market rally could be solid contenders for a rebound, according to Goldman Sachs. The major averages have had a rocky start to April, but they kicked off 2024 on a strong note. The S & P 500 jumped more than 10% in the first quarter. Heading into the second quarter, Goldman searched for buy-rated names in its coverage universe that could win big going forward.

"We think the bull case is fairly obvious, with APTV's product portfolio representing one of the best levered to megatrends within our coverage universe of parts suppliers," he wrote. Biopharmaceutical titan Pfizer was another name Goldman highlighted as a compounding buy. Although the majority of analysts covering the stock have it at a hold rating, the potential upside for the stock is nearly 19% from here, per LSEG. Pfizer has slipped 9% this year.

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