Walmart Added To Goldman Sachs US Conviction List In Reshuffle (WMT, MCD, VLO, CDNS)

Walmart (WMT) has been added to Goldman Sachs' US Conviction List, signaling strong confidence in the retail giant's ability to outperform in the current market. The addition comes as Walmart navigates a retail landscape facing increased merchandise costs driven by new tariffs.

News of the inclusion has been met with a modest positive reaction in the market. As of September 2, 2025, Walmart's stock is trading at $96.98, representing a 0.93% increase from the previous day's close. This upward momentum reflects the market's recognition of Walmart's strategic positioning.

Goldman Sachs analysts have issued a Buy rating on Walmart, setting a price target of $114. The firm believes Walmart is uniquely positioned to capture market share as competitors grapple with rising costs. Walmart's scale, coupled with its ongoing investments in e-commerce and supply chain optimization, are expected to provide a competitive edge in an environment where consumers are increasingly price-sensitive. The company's ability to leverage its vast store network for online order fulfillment also strengthens its omnichannel capabilities.

Walmart has been actively investing in technology and infrastructure to enhance its customer experience and streamline operations. These investments include expanding its online grocery pickup and delivery services, implementing advanced data analytics to optimize inventory management, and introducing innovative store formats to cater to evolving consumer preferences. These strategic initiatives are expected to drive long-term growth and profitability.

Also added to the list was McDonalds (MCD), with a $355 price target, Valero, with a $162 price target, and Cadence Design with a $400 price target.

Goldman expects the scale, marketing, and digital knowhow at MCD to drive the company through an uncertain trading environment as far as the consumer is concerned. Cadence Design is seen as having a compounding growth story, whilst Valero is expected to benefit from a structural upcycle in refining.

A couple of names to be removed from the list were Viper Energy, and Ismed.