![Goldman Sachs added these global stocks to its 'beliefs' list](https://news7g.com/wp-content/uploads/2024/07/107427882-1718204601272-gettyimages-2157295093-ms1_9642_x24kqchc-780x470.jpeg)
Goldman Sachs has refreshed its list of top global stock picks for July, adding some and removing some. The stocks are featured in the investment bank’s “Conviction List – Directors’ Cut,” which provides investors with a “curated and active” list of 15 to 25 stocks rated buy. The stocks on the list are selected by a subcommittee appointed by the bank’s Investment Review Committee for each region. “The committee works with each sector analyst to identify leading ideas that offer a combination of conviction, differentiated views, and high risk-adjusted returns,” Goldman Sachs said. Here are the two latest additions to Goldman’s directors’ cut list — for Asia-Pacific and Europe. Tencent Holdings Chinese tech giant Tencent made Goldman’s list, with the bank saying it “offers one of the most visible and sustainable 20%+ earnings growth setups” in the country’s internet sector. The company has a “unique combination” of growing gaming revenue from new titles as well as growing advertising market share following “multi-year ad tech upgrades,” the investment bank’s analyst Ronald Keung wrote in a July 1 research note about the company’s Asia picks. Other advantages he sees include “a committed and consistent shareholder return policy in the form of buybacks and dividends — at least HK$100 billion [$12.8 billion] in annual share buybacks for 2024 (yield around 3%).” Keung added that these factors “should be supportive for the stock.” Tencent is listed on the Hong Kong Stock Exchange and is an American Depositary Receipt in the United States. Shares of the tech giant have been rallying after a bumpy ride over the past few months. They are now up nearly 24% year-to-date and 10% over the past 12 months. Goldman has a 12-month price target of HK$477 on the stock, implying upside of nearly 30%. ISS Goldman likes Danish facilities management company ISS for its improving fundamentals and “a range of earnings, [free cash flow] beat and material shareholder returns.” The investment bank’s analyst Ben Andrews expects the company’s organic growth and margins to beat consensus estimates. This “provides additional reassurance around ISS’s delivery,” he was quoted as saying in the bank’s July 1 research note on its European options. He also predicted that ISS will announce increased buybacks, which would be a “potential positive catalyst.” The Danish company’s shares are listed on the Copenhagen Stock Exchange and in the United States as ADRs. The company’s shares have been on a downward trend, down 8.3% year-to-date and nearly 18% over the past 12 months. Goldman has a price target of 160 Danish krone ($23) on the stock, which represents about 35.7% upside potential. — CNBC’s Michael Bloom contributed to this report.