Goldman Sachs has released its top stock recommendations following Q2 earnings, highlighting five companies with significant growth potential. The investment bank maintains ‘buy’ ratings on Loar Holdings, MasTec, Toast, Quanta Services, and StubHub, citing strong guidance, robust market positioning, and innovative business strategies across the board.
Following a robust second-quarter earnings season, Goldman Sachs has identified several top-tier stocks that they believe are poised for further growth. The investment bank highlights a selection of companies, including StubHub, Loar Holdings, MasTec, Toast, and Quanta Services, as prime 'buy' opportunities.
Loar Holdings: Analyst Noah Poponak remains confident in the aerospace and defense component manufacturer. He notes that the company's 2026 guidance for revenue, EBITDA, and EPS surpasses consensus estimates. Goldman Sachs points to Loar's strong growth across end-markets, potential for new business wins, margin expansion opportunities, high free cash conversion, and strategic acquisitions. Loar shares have already climbed 14% this year and remain a fixture on Goldman's prestigious conviction buy list. Poponak anticipates continued "upside to near-term estimates" for this "long-term compounder."
Toast: Led by analyst Will Nance, Goldman's team was thoroughly impressed by the fintech restaurant company's recent earnings. While some investors express concern over Toast's investment spending, the bank believes these fears are overstated. Goldman analysts stated, "However, we think TOST management did a good job tempering that message with the upbeat commentary around structurally higher margins in the business going forward." Nance further highlighted positive catalysts such as improved visibility on customer acquisition costs and growing subscriptions for the company's AI-powered marketing platform, Toast IQ Grow. Concluding their analysis, Goldman affirmed, "With shares now pricing in significant growth related investments and depressed margins in hardware in the near term, we believe the risk reward is positive and remain Buy rated." Toast's stock has seen a 16% increase over the past month.
MasTec: Despite a mixed quarterly report, analyst Neil Mehta advises investors to "buy the dip" in shares of this infrastructure and engineering powerhouse. Goldman Sachs asserts that MasTec is strategically positioned to capitalize on the burgeoning data center construction boom. Mehta projects long-term growth, expecting MasTec to secure significant projects, particularly in pipelines and infrastructure, which will drive EBITDA margin expansion and an EPS compound annual growth rate (CAGR) of approximately 17% between 2025 and 2030. Although the bank adjusted its price target down to $409 from $508, it reiterated its confidence in the stock's future. "Amid continued focus on margin growth for MTZ, we see the inclusion of large projects over the long-term on both the pipelines and infrastructure sides of the business as main drivers of EBITDA margin expansion," Mehta explained. MasTec's stock has surged 37% this year.
Quanta Services: Goldman Sachs continues to view Quanta Services (PWR) as a primary beneficiary of increasing power demand. The bank forecasts an impressive EPS CAGR of around 19.5% between 2026 and 2030, fueled by sustained growth in both its Electric and Underground & Infrastructure divisions.
StubHub: The report underscores StubHub's strong position, stating, "Looking beyond short-term debates and any short-term stock price reaction to a framing of the guide, we continue to frame STUB as being positively levered to the large and growing ticketing market opportunity. We reiterate our Buy rating on the shares and our 12-month PT of $16."
