Bank contagion and recessionary fears continue to plague investors, but Goldman Sachs analysts said investors should remain calm. The firm named a slew of buy-rated stocks this week to play the market uncertainty. CNBC Pro combed through top Goldman Sachs research to find companies that are well-positioned to come out on the other side. They include: J.B. Hunt , EQT, Array Technologies, Iron Mountain and Altria. EQT The hydrocarbon exploration company is a table-pounding buy, according to Goldman analyst Neil Mehta. The firm said EQT is well positioned for growth even if gas prices continue to decline. “Our Buy rating on EQT is underpinned by the company’s differentiated scale and inventory relative to peers,” he wrote. Goldman said EQT’s highly “attractive” free cash-flow allows for “share purchase and debt reduction.” Over the long term, Mehta predicts 14% free-cash flow yield compared with 11% for peers, he said. Meanwhile, the stock is down 9.6% this year. EQT is coming off a disappointing fourth-quarter earnings report last month, but the firm said investors should remain calm and buy the dip. Mehta, who has a price target of $43 per share said it’s important that investors focus on “quality” as macro conditions remain so uncertain. “We believe EQT offers attractive upside to shares through the cycle,” he said Iron Mountain Shares of the data and record management company are down 1.2% year to date, but analyst George Tong said it’s time to buy the stock. The firm sees multiple positive catalysts ahead, noting that Iron Mountain offers resilience and defensive qualities in a turbulent macro environment. “IRM’s data center business, legacy IT asset destruction offerings and digital solutions, part of IRM’s growth portfolio that we estimate makes up ~30% of total revenue, are all expanding double-digits with positive pipeline trends,” he said. Tong also likes the stock’s valuation, saying its international opportunities are underappreciated. “A reopening in China also serves as a catalyst for accelerating revenue growth and upside in IRM’s ITRenew business,” he wrote. In addition, Iron is seeing “healthy storage pricing trends” and its digital solutions have double-digit upside, according to the firm. “We believe IRM’s pricing power and expanding growth portfolio will drive attractive organic revenue growth,” he added. Array Technologies Shares of the solar tracking and systems solutions company are up a whopping 35% over the last 12 months. But analyst Brian Lee expects the stock has plenty more room to run. Array’s fourth-quarter earnings report was mixed , however, Lee expects the company to get a big boost from the Inflation Reduction Act. “Looking ahead to FY2023, we believe there is tangible upside to guidance metrics driven domestic content and manufacturing credit provisions in the IRA,” he said. Lee noted that Array hasn’t embedded any benefits from the new legislation into its guidance, therefore he expects it will serve as a positive catalyst in the future. “ARRY noted that it has not yet seen an acceleration in demand driven specifically by customers seeking to qualify for domestic content tax credit adders from the IRA,” Lee wrote. Still, Array remains on a “solid path” to profitability and the stock’s price is very compelling. “We remain buy,” he said succinctly. Altria “Mgmt outlines compelling smoke-free strategy at its Investor Day to drive accelerated [long-term] growth. … We came away optimistic about MO’s future and ability to pivot its portfolio to a smoke-free business following its Investor Day. … MO continues to have optionality to monetize its 10.1% stake in [ Anheuser-Busch InBev ] especially given the tax shield it now has from JUUL. We reiterate our Buy rating on MO as we have strong conviction that it will be able to comfortably deliver on its MSD EPS growth target this year and through FY28.” J.B. Hunt “The key reasons we remain optimistic that growth can accelerate are as follows … resumption in global trade that at least matches if not slightly exceeds global GDP growth. … .rail service improvement would be directly transferable to Hunt in the form of improved productivity, operating efficiency, lower cost, and perhaps most importantly improved box turns … [and] transloading should continue to rise leading to more domestic versus international container moves.” EQT “Our Buy rating on EQT is underpinned by the company’s differentiated scale and inventory relative to peers. … .Our Buy rating on EQT is underpinned by the company’s (1) differentiated scale and inventory relative to peers; (2) attractive FCF which can allow for share repurchase and debt reduction. … We believe EQT offers attractive upside to shares through the cycle.” Iron Mountain “IRM’s data center business, legacy IT asset destruction offerings & digital solutions, part of IRM’s growth portfolio that we estimate makes up ~30% of total revenue, are all expanding double-digits with positive pipeline trends. … Reopening in China also serves as a catalyst for accelerating revenue growth & upside in IRM’s ITRenew business. … IRM’s revenue mgmt strategy is translating into healthy storage pricing trends. … We believe IRM’s pricing power and expanding growth portfolio will drive attractive organic revenue growth.” Array Technologies “Looking ahead to FY2023, we believe there is tangible upside to guidance metrics driven domestic content & manufacturing credit provisions in IRA. … ARRY noted that it has not yet seen an acceleration in demand driven specifically by customers seeking to qualify for domestic content tax credit adders from IRA. … On margins, we remain constructive on ARRY’s solid path back to profitability as ARRY is formally guiding low-twenties gross margins for FY2023, gross margin levels ARRY had historically achieved prior to 2021.”
