Goldman Sachs recommends buying these five stocks after recent declines

Goldman Sachs has published this week a list of five stocks that the bank considers as buying opportunities after their recent pullbacks. The cited stocks—Alibaba Group, Burlington Stores, Ulta Beauty, Aecom, and Viking Holdings—all show underperformance compared to their annual averages, but the analysts see undervaluation and medium-term growth catalysts. This recommendation comes as global equity markets remain volatile, offering investors a window to strengthen their positions in "too attractive to ignore" stocks, according to a CNBC report (05/09/2026).

Alibaba Group: The decline creates a buying opportunity

The Chinese giant of online commerce has seen a notable drop in recent weeks, though the exact percentage isn't specified in the brief. Goldman Sachs believes the stock's retreat has unfairly punished Alibaba's valuation, which remains one of Asia's leaders in e-commerce and cloud services. Analysts note that regulatory pressure, which weighed on the stock last year, has eased, potentially paving the way for a rebound in investor sentiment.

Goldman analysts highlight Alibaba's ability to monetize its vast user ecosystem, combined with AI initiatives, as a key driver for recovery. They also note that the company benefits from strong cash reserves, enabling it to support investments without excessive debt. The stock, included in the S&P 500, could offer above-average market returns if the downtrend stabilizes.

Ulta Beauty: -7% YTD, undervalued beauty giant according to Goldman

Ulta Beauty has lost nearly 7% of its value since the start of the year, according to the CNBC report. Analyst Kate McShane stated that the stock has been "unfairly punished," even though the second quarter showed stronger promotional growth than last year. She adds that the second-half expectations could be conservative, leaving room for upward revaluation.

Despite intense competition, Goldman analysts remain confident in Ulta's ability to gain market share through its omnichannel model. The company combines well-located physical stores with a strong online platform, creating sales synergies. Analysts expect robust gross margins to support medium-term profit prospects.

Burlington Stores: -8% YTD, strong margins and new openings

Burlington has seen its stock decline by approximately 8% since the start of the year, following a mixed quarterly report published in late August. Kate McShane noted that despite 2% comparable sales growth in the second quarter, third-quarter expectations disappointed market forecasts. However, the company demonstrated strong margin execution and raised its 2026 guidance on a pro forma basis.

Goldman highlights several operational levers that, according to analysts, should support profit growth. These include the productivity of new stores, additional margin flow, and the ability to pass on costs to prices. The stock, despite short-term underperformance, benefits from margin dynamics that could translate into a price rebound.

Viking Holdings: -20% in one month, luxury cruises remain attractive

Viking Holdings' shares have dropped 20% over the past month, reflecting concerns about European navigation conditions and luxury cruise demand. Analyst Lizzie Dove reaffirmed Goldman's conviction that the stock remains attractive long-term. She emphasizes Viking's differentiated geographic exposure and its focus on high-income clients as sector challenges are offset.

Analysts expect Viking to continue price and capacity growth, with best-in-class fare increases projected through mid-2026 and beyond. The company focuses on European river cruises, where competition is lower, and on modern ships offering a premium experience. These factors, combined with prudent cash flow management, reinforce the potential for a stock rebound.

Aecom: Temporary divestment, AI fears, and construction projects

Aecom's stock has declined, with analysts attributing the retreat to two main concerns: fears that AI could disrupt the engineering and design sector, and uncertainty around two legacy construction management projects. Goldman notes that the current discount reflects more the project management-related tensions than the company fundamentals.

Analysts estimate that most of the discount stems from temporary construction management challenges rather than structural weaknesses. They highlight Aecom's diversified portfolio of contracts and the potential rebound in public infrastructure demand to support the stock's recovery. According to analysts, the current price offers an attractive margin of safety for investors willing to take on short-term risk.

Synthesis of recommendations and portfolio implications

Goldman Sachs recommends buying the five cited stocks, estimating that their current valuations do not fully reflect their growth prospects. Analysts emphasize that each stock has specific catalysts—whether it's the rebound in online commerce for Alibaba, margin dynamics for Ulta and Burlington, or geographic differentiation for Viking—that could trigger substantial revaluation.

For investors seeking diversification, these recommendations offer a mix of technology, discretionary consumption, and infrastructure stocks. Positioning through the S&P 500 via these stocks allows exposure to a broader market while targeting rebound opportunities. Goldman analysts stress that patience will be key, as prices may first stabilize before reflecting underlying fundamentals.