Goldman Sachs has expanded its conviction stock portfolio with four new additions to its June favorite stocks list, according to reports from CNBC TV18 and Investing.com. The investment bank's latest selections include Tyson Foods and Block among the new inclusions, representing strategic additions to their preferred equity holdings. The additions reflect Goldman Sachs' ongoing approach to building conviction-based investment portfolios, as reported by CNBC TV18. The firm's conviction list serves as a curated selection of stocks that the investment bank believes demonstrate strong fundamentals and growth potential. Casella Waste Systems and TPG were also included in the latest additions to the list of most recommended names for June as part of Goldman Sachs' monthly reshuffling process. The latest changes lift the basket to 21 U.S. stocks and underscore the bank's preference for companies tied to earnings growth, margin expansion and sector-specific recovery themes.
The additions reflect Goldman Sachs' ongoing approach to building conviction-based investment portfolios, as reported by CNBC TV18. The firm's conviction list serves as a curated selection of stocks that the investment bank believes demonstrate strong fundamentals and growth potential. The inclusion of both Tyson Foods and Block suggests diversification across different sectors and market segments. The latest additions include Casella Waste Systems and TPG to the list of most recommended names for June as part of Goldman Sachs' monthly reshuffling process. The changes mark the three-year anniversary of the conviction list, with Goldman Sachs examining themes relevant to markets for the remainder of the year and highlighting areas where its views differ from consensus. The June reshuffle reflects Goldman's focus on U.S. stocks demonstrating strong fundamentals and operational execution across diverse sectors, rather than following a single macro theme.
Goldman Sachs added Tyson Foods to the list, applauding the company's "diversified portfolio with leverage to the hottest area of food." As per Goldman Sachs, "Look for continued earnings growth at TSN — the U.S.'s largest protein processor and marketer — driven by its diversified protein portfolio, plus further margin expansion driven by ongoing operational improvements, strong demand trends, as well as generally better execution across the board." Shares of Tyson Foods have added nearly 3% this year, with Goldman's $81 price target representing upside of nearly 33% from Friday's close. The firm's positive outlook is based on the company's strong fundamentals and operational improvements across its protein processing business. The bank expects continued earnings growth and further margin expansion at the company, whose shares are up nearly 3% this year.
Block was strongly favored by Goldman Sachs, with shares having surged about 19% in 2026. Goldman has a $95 price target on the name, offering upside of 25% from Friday's close. The firm described Block as "a cash generating share gainer with an AI productivity enhancement story." TPG was added to the conviction list, with Goldman calling out the company's "sustainable growth platform at a discounted valuation." TPG, trading at $42.57 with a market cap of $16.4 billion, has declined 31.5% year-to-date but appears undervalued according to InvestingPro analysis. Goldman's $61 price target indicates about 43% upside from Friday's close. The firm noted that TPG offers a 5.5% dividend yield and has raised its dividend for four consecutive years, according to InvestingPro Tips. However, the firm attributed TPG's recent decline to pressure on the broad alternative asset manager sector, but sees stronger-than-feared expansion in private credit, wealth management and private equity.
Casella Waste Systems was the final new addition to Goldman's conviction list. The firm highlighted the waste management company's sustainable growth prospects, writing that it sees margin expansion ahead. "Valuation has moved from a premium to in line with peers to a discount over the last year following integration challenges with the acquisition of GFL's Mid-Atlantic assets," the firm noted, referring to Casella's 2023 acquisition of GFL Environmental's collection, transfer and recycling operations. "With the integration now largely complete, and with customers transitioned to CWST's new lead-to-cash system, the focus is shifting to synergy realization," Goldman added. The firm's $120 price forecast implies that shares of Casella Waste Systems could add 46% from Friday's close, demonstrating the bank's confidence in the company's operational improvements and market positioning. The June changes also show Goldman favoring companies where it sees a combination of earnings momentum and improving margins, even when recent share performance has diverged sharply.
