In this article, we discuss the Goldman Sachs Value Stocks: Top 12 Stock Picks.
As we recently discussed in another article, growth stocks are massively overvalued and trading at significant premiums, which is why investment firms advise investors to concentrate on value stocks. Near the end of March 2025, artificial intelligence stocks that had taken the market over by storm faced losses, while undervalued stocks gained momentum. Similarly, hedge fund managers believe that now is the time to invest in value stocks, with cheap equities available across all industries. Banks, energy, consumer durables, healthcare, and media companies offer lucrative investment opportunities.
So, what is value investing? Matthew Fine, portfolio manager at Third Avenue Management, describes it as identifying companies trading at a notable discount to a conservative estimate of their true value. These opportunities often arise when a business, industry, or region faces challenges that cause investors to overreact and assume current difficulties will persist long-term. This pessimism creates chances to invest at attractive valuations. While broader equity markets currently appear overvalued, largely driven by the United States, Third Avenue sees overlooked value in many individual companies. Despite a rocky economy, the fund manager believes many quality businesses have become even cheaper, offering compelling opportunities for patient investors. However, the key is to avoid buying a company that seems cheap just because it has temporary advantages that might not last.
Warren Buffett is the king of value investing, and back in 2023, he commented in his annual shareholder meeting that “what gives you opportunities is other people doing dumb things”. Buffett’s Berkshire picks up stocks when others are panic-selling their holdings, and although the Oracle of Omaha understands that the world is rapidly changing, he still sees several value investing opportunities.
Overall, the stock market is in mayhem because of the uncertainty brought on by US trade wars and tariffs. However, institutional investors like Goldman Sachs align with the market perspective and have a thriving $634 billion portfolio. So, let’s take a look at the top Goldman Sachs value stocks.
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Our Methodology
To compile our list of Goldman Sachs’ top value stock picks, we searched the investment firm’s Q4 2024 portfolio, starting from the top and assessing the PE ratios as of April 11. From there, we chose the top 12 stocks with PE ratios of 25 or under as Goldman Sachs’ value picks. We have also mentioned the Q4 2024 hedge fund sentiment around the holdings for further insight. The list is ranked in ascending order of Goldman Sachs’ stake value.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Cisco Systems, Inc. (NASDAQ:CSCO)
Goldman Sachs’ Q4 2024 Stake Value: $1,760,497,076
P/E Ratio as of April 11: 23.33
Number of Hedge Fund Holders: 84
Cisco Systems, Inc. (NASDAQ:CSCO) is a California-based designer and manufacturer of IP-based networking and communications products. Cisco offers solutions such as campus and data center switching, enterprise routing, and wireless products for effortless voice, video, and data connectivity to customers worldwide. The company also specializes in advanced security solutions like network protection, identity and access management, and threat detection, as well as collaboration tools like the Webex Suite. Goldman Sachs owns a $1.76 billion stake in the company as of Q4 2024, making it one of the top Goldman Sachs value stocks.
On March 18, Cisco Systems, Inc. (NASDAQ:CSCO) and NVIDIA announced a partnership where they launched a new AI factory architecture that prioritizes security. The Cisco Secure AI Factory is made to help businesses develop and grow their AI technology easily and safely. It combines Cisco’s strong security tools, like Hypershield and AI Defense, with NVIDIA’s high-speed networking technology, Spectrum-X. This will offer businesses a safe, flexible, and simple way to create and manage AI systems without losing performance or protection.
On February 12, Cisco Systems, Inc. (NASDAQ:CSCO) declared a quarterly dividend of $0.41 per share, up 3% compared to the last quarter. The dividend will be paid on April 23, to shareholders listed by April 3. Cisco’s board also approved a $15 billion boost to its share repurchase program, bringing the total available for buybacks to around $17 billion.
According to Insider Monkey’s fourth quarter database, 84 hedge funds were long Cisco Systems, Inc. (NASDAQ:CSCO), up from 60 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest stakeholder of the company, with 13.8 million shares valued at $821.7 million.
11. Energy Transfer LP (NYSE:ET)
Goldman Sachs’ Q4 2024 Stake Value: $1,795,751,044
P/E Ratio as of April 11: 12.23
Number of Hedge Fund Holders: 37
Energy Transfer LP (NYSE:ET) is a Texas-based company that operates a massive network of pipelines and facilities to transport, store, and process natural gas, crude oil, and natural gas liquids. As of the fourth quarter of 2024, Goldman Sachs holds 91.6 million shares of ET valued at $1.79 billion. It is one of the best Goldman Sachs value stocks to invest in. On March 25, UBS maintained a Buy rating on Energy Transfer LP (NYSE:ET) with a $24 price target, signaling strong belief in the company’s continued growth and strategic improvements.
Energy Transfer LP (NYSE:ET) reported its Q4 results, with net income coming in at $1.08 billion. The adjusted EBITDA for the quarter stood at $3.88 billion, up from $3.60 billion in Q4 2023. Distributable cash flow came in at $1.98 billion. In December 2024, the company raised capacity on the Sabina 2 pipeline and Grey Wolf plant and launched the first of eight natural gas power units to support its Texas operations. ET forecasts 2025 adjusted EBITDA to fall between $16.1 billion and $16.5 billion.
On January 28, 2025, Energy Transfer LP (NYSE:ET) declared a quarterly dividend of $0.325 per share, a 0.8% increase from its prior dividend of $0.323. The dividend was paid out on February 19.
According to Insider Monkey’s fourth quarter database, 37 hedge funds held stakes in Energy Transfer LP (NYSE:ET), compared to 29 funds in the preceding quarter. David Abrams’ Abrams Capital Management was a prominent stakeholder of the company, with 17.8 million shares worth $349.3 million.
10. TC Energy Corporation (NYSE:TRP)
Goldman Sachs’ Q4 2024 Stake Value: $1,896,648,927
P/E Ratio as of April 11: 15.66
Number of Hedge Fund Holders: 31
TC Energy Corporation (NYSE:TRP) is a Canadian energy company that constructs and manages natural gas pipelines, power plants, and gas storage facilities across the United States, Canada, and Mexico. It is one of the best Goldman Sachs value stocks to monitor, with the investment firm holding a position worth $1.89 billion as of the fourth quarter of 2024.
On April 4, Citi analysts began coverage of TC Energy Corporation (NYSE:TRP) with a Neutral rating and price target of C$75. The analysts believe that TRP is well-positioned in the fast-growing energy markets, and they forecast this momentum to drive the company’s EBITDA up by more than 30% over the next five years, averaging about 6% growth per year.
TC Energy Corporation (NYSE:TRP) declared a C$0.85 per share quarterly dividend, a 3.3% increase from its prior dividend of C$0.82. The dividend is distributable on April 30, to shareholders of the company as of March 30. 2025 marks the 25th consecutive year of dividend growth by TRP.
Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2024, 31 funds reported owning stakes in TC Energy Corporation (NYSE:TRP), compared to 34 funds in the prior quarter. Arrowstreet Capital was a prominent stakeholder of the company, with 2.20 million shares worth $102.4 million.
9. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Goldman Sachs’ Q4 2024 Stake Value: $2,183,461,911
P/E Ratio as of April 11: 20.76
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest semiconductor firm in the world. As of the fourth quarter of 2024, Goldman Sachs held a significant position in TSM, with 11.05 million shares worth $2.18 billion. On April 10, investment advisory Bernstein maintained an Outperform rating on TSM with a price target of $251. The company kicked off 2025 strong, reporting Q1 revenue that topped expectations and came in near the high end of its guidance.
On February 14, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) declared a $0.6855 per share quarterly dividend. The dividend is set to be paid on July 10, to shareholders listed by June 12.
TSM announced on March 4 that it is spending an extra $100 billion to grow its chip-making business in the US, bringing its total investment to $165 billion. This is the biggest investment ever made in the US by a foreign company. The plan includes building three new factories, two packaging centers, and a big research center in Arizona. This move will create thousands of high-paying tech jobs, boost AI innovation, and help build a stronger US semiconductor supply chain.
Among the hedge funds tracked by Insider Monkey, 186 funds held stakes in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of Q4 2024, compared to 158 funds in the prior quarter. Ken Fisher’s Fisher Asset Management was the biggest position holder in the company, with 28.35 million shares valued at nearly $5.6 billion.
8. The Home Depot, Inc. (NYSE:HD)
Goldman Sachs’ Q4 2024 Stake Value: $2,223,163,256
P/E Ratio as of April 11: 22.47
Number of Hedge Fund Holders: 88
The Home Depot, Inc. (NYSE:HD) is an American home improvement retailer that sells building supplies, garden tools, home decor, and more. It is one of the best Goldman Sachs value stocks to consider, with the firm holding a $2.2 billion stake in HD. On April 10, UBS maintained a Buy rating on the stock with a price target of $475. After meeting with the company’s leadership, UBS remains optimistic about the future and believes the company can get back to steady earnings growth in the coming years.
On February 25, The Home Depot, Inc. (NYSE:HD) announced a $2.30 per share quarterly dividend, a 2.2% increase from its prior dividend of $2.25. The dividend was distributed on March 27, to shareholders of the company as of March 13. This is the 152nd consecutive quarter the company has paid a cash dividend. The Home Depot, Inc. (NYSE:HD)’s Q4 2024 sales came in at $39.7 billion, up 14.1% from the prior-year quarter. Net earnings for the fourth quarter stood at $3 billion or $3.02 per diluted share, compared to $2.8 billion in the same quarter last year.
According to Insider Monkey’s fourth quarter database, 88 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD), compared to 82 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management was the leading stakeholder of the company, with 9.5 million shares valued at $3.71 billion.
7. Accenture plc (NYSE:ACN)
Goldman Sachs’ Q4 2024 Stake Value: $2,305,571,920
P/E Ratio as of April 11: 23.20
Number of Hedge Fund Holders: 79
Accenture plc (NYSE:ACN) is a global professional services company based in Dublin, Ireland. The company offers services like AI, cybersecurity, software development, and automation across many industries like tech, finance, healthcare, retail, and energy. At the end of the December quarter, Goldman Sachs held 5.71 million shares of Accenture plc (NYSE:ACN) valued at $2.30 billion, making it one of the top Goldman Sachs value stocks to consider.
On March 25, BMO Capital Markets reiterated a Market Perform rating on Accenture plc (NYSE:ACN) with a $355 price target. Analyst Keith Bachman believes ACN’s current outlook is solid, but he does not expect any big jumps in the stock for now.
In the second quarter of fiscal year 2025, Accenture plc (NYSE:ACN) announced new bookings of $20.9 billion, with revenue of $16.7 billion, up 5% in US dollars and 8.5% in local currency. The company’s free cash flow came in at $2.68 billion. ACN also announced a quarterly cash dividend of $1.48 per share, up 15%, and repurchased or redeemed 4 million shares worth $1.4 billion.
According to Insider Monkey’s fourth quarter database, 79 hedge funds were bullish on Accenture plc (NYSE:ACN), up from 60 funds in the prior quarter. David Blood and Al Gore’s Generation Investment Management was a significant position holder in the company, with 2.49 million shares worth nearly $876 million.
6. Exxon Mobil Corporation (NYSE:XOM)
Goldman Sachs’ Q4 2024 Stake Value: $2,504,575,163
P/E Ratio as of April 11: 12.85
Number of Hedge Fund Holders: 104
Exxon Mobil Corporation (NYSE:XOM), an American multinational oil and gas titan, is one of the best Goldman Sachs value stocks. The investment firm holds 6.5 million shares of XOM worth $2.5 billion as of Q4 2024. On April 4, TD Cowen reiterated a Buy rating on Exxon Mobil Corporation (NYSE:XOM) but trimmed the price target from $128 to $125. While the company’s financial outlook has slightly shifted, analysts at TD Cowen remain confident in Exxon’s performance and share buyback plans, even if commodity prices dip. They still see it as one of the strongest picks in the energy sector.
In 2024, ExxonMobil reported $33.7 billion in earnings, slightly less than last year’s $36 billion. The company generated $55 billion in cash from operations and returned $36 billion to shareholders through dividends and stock buybacks. It also led the industry in shareholder returns over the past 1, 3, and 5 years. Exxon Mobil Corporation (NYSE:XOM) plans to maintain its $20 billion annual share repurchase program through 2026. XOM raised its dividend for the 42nd straight year and ended 2024 with a $23.2 billion cash balance and low debt levels.
Exxon Mobil Corporation (NYSE:XOM) has remodeled its oil and gas portfolio by discarding assets worth $15 billion and focusing on resources like the Permian Basin, Guyana, and LNG. The company’s full-year production came in at 4.3 million BOED, which can potentially reach 5.4 million BOED by 2030. The Pioneer acquisition boosted its Permian position, and innovation is improving recovery rates. XOM also plans to double its LNG capacity through projects in the United States, Papua New Guinea, and Mozambique.
According to Insider Monkey’s fourth quarter database, 104 hedge funds held long positions in Exxon Mobil Corporation (NYSE:XOM), compared to 86 funds in the earlier quarter. Jean-Marie Eveillard’s First Eagle Investment Management was a significant stakeholder of the company, with 8.6 million shares valued at roughly $934 million.
5. The Procter & Gamble Company (NYSE:PG)
Goldman Sachs’ Q4 2024 Stake Value: $2,830,956,468
P/E Ratio as of April 11: 25.26
Number of Hedge Fund Holders: 79
American multinational consumer goods corporation, The Procter & Gamble Company (NYSE:PG), ranks 5th on our list of the best Goldman Sachs value stocks. On March 26, Evercore ISI maintained an Outperform rating on PG with a $180 price target. According to Evercore, the company remains committed to its investment strategy despite economic pressures and slower market growth. This can potentially expand consumer access and innovation, leading to consistent volume share gains in the United States and important international markets.
On April 8, The Procter & Gamble Company (NYSE:PG) declared a $1.0568 per share quarterly dividend, a 5% increase from its prior dividend of $1.0065. The dividend is distributable on May 15, to shareholders on record as of April 21. The company has paid dividends for 135 years straight and has raised its payouts for 69 consecutive years.
The Procter & Gamble Company (NYSE:PG) reported Q2 FY2025 net sales of $21.9 billion, up 2% from last year, with organic sales rising 3%. Earnings per share came in at $1.88, a 34% year-over-year increase. The company returned $4.9 billion to shareholders through dividends and stock buybacks. PG is sticking to its 2025 guidance, expecting 10-12% EPS growth and 5-7% core EPS growth. However, the company acknowledged some headwinds, including $500 million from higher costs and weaker currency exchange rates. Procter & Gamble plans to return up to $17 billion to shareholders through dividends and share repurchases during fiscal 2025.
Among the hedge funds tracked by Insider Monkey, The Procter & Gamble Company (NYSE:PG) was part of 79 hedge fund portfolios at the end of Q4 2024, compared to 68 funds in the prior quarter. Terry Smith’s Fundsmith LLP was a notable stakeholder of the company, with 4.62 million shares worth $775.6 million.
4. Berkshire Hathaway Inc. (NYSE:BRK-B)
Goldman Sachs’ Q4 2024 Stake Value: $3,200,270,973
P/E Ratio as of April 11: 11.93
Number of Hedge Fund Holders: 131
Berkshire Hathaway Inc. (NYSE:BRK-B), the Buffett-led legacy conglomerate, is one of the top Goldman Sachs value stocks to watch out for. The investment firm holds over 7 million Berkshire shares valued at $3.20 billion. On February 24, UBS analyst Brian Meredith assigned BRK-B a Buy rating and bumped the price target to $557 from $536. UBS is optimistic about Berkshire after a strong earnings beat, driven by robust insurance results. Investment income also came in higher than expected. The stock is trading close to its true value, and with steady insurance performance and a diversified portfolio, analysts see it as a reliable pick in a turbulent economy.
On February 22, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) reported its financial results for the last three months of 2024. The company’s operating profit grew 71% during the quarter, reaching $14.5 billion. This increase was driven by a huge 302% surge in insurance underwriting and a 50% rise in investment income. Earnings for the year increased 27% to $47.4 billion. Berkshire has also amassed significant cash reserves of $334.2 billion as of December 2024.
According to Insider Monkey’s fourth quarter database, 131 hedge funds reported owning stakes in Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 120 funds in the last quarter. Bill & Melinda Gates Foundation Trust was the biggest stakeholder in the company, with 19.65 million shares worth $8.90 billion.
3. JPMorgan Chase & Co. (NYSE:JPM)
Goldman Sachs’ Q4 2024 Stake Value: $4,870,962,238
P/E Ratio as of April 11: 10.98
Number of Hedge Fund Holders: 123
JPMorgan Chase & Co. (NYSE:JPM), a New York-based financial services giant, comes in third on our list of the best Goldman Sachs value stocks. Goldman owns 20.3 million JPM shares as of the fourth quarter of 2024, valued at $4.8 billion and representing 0.76% of the total portfolio.
On March 12, Truist Securities maintained a Hold rating on JPM with a price target of $268. Truist noted that most of JPMorgan’s customers have good credit and have stayed steady during the ups and downs in the economy. The bank also has solid financials, shown by its consistent dividend policy.
JPMorgan’s Q1 2025 profit went up 9% to $14.64 billion, or $5.07 a share. Even without a one-time gain from the First Republic deal, earnings stood at $4.91 per share. The company’s revenue rose 8% to $46.01 billion, supported by solid results in asset management, investment banking, and a notable 48% increase in equities trading. On March 18, 2025, JPMorgan Chase & Co. (NYSE:JPM) declared a $1.40 per share quarterly dividend, a 12% jump from the prior dividend of $1.25. The dividend is payable on April 30, to shareholders on record as of April 4.
Among the hedge funds tracked by Insider Monkey, 123 funds reported owning stakes in JPMorgan Chase & Co. (NYSE:JPM) at the end of Q4 2024, compared to 105 funds in the preceding quarter. Andreas Halvorsen’s Viking Global was the leading stakeholder of the company, with 7.46 million shares worth $1.78 billion.
2. Meta Platforms, Inc. (NASDAQ:META)
Goldman Sachs’ Q4 2024 Stake Value: $8,269,459,946
P/E Ratio as of April 11: 21.41
Number of Hedge Fund Holders: 262
Mark Zuckerberg’s Meta Platforms, Inc. (NASDAQ:META), with a P/E ratio of 21.41, ranks 2nd on our list of the Goldman Sachs value stocks. Piper Sandler analyst Thomas Champion assigned an Overweight rating on the stock, with a price target of $610. The analyst commended Meta’s strong ad checks and solid revenue growth, with Q2 projected to bring in $42.5 billion to $45.5 billion. While there are some concerns around e-commerce and China, Meta still looks financially healthy and undervalued, trading at a low PEG ratio, according to Champion.
On February 13, Meta Platforms, Inc. (NASDAQ:META) declared a $0.525 per share quarterly dividend, a 5% increase from its prior dividend of $0.50. The dividend was distributed on March 26, to shareholders listed by March 14.
Meta Platforms, Inc. (NASDAQ:META)’s most advanced AI models yet, Llama 4 Scout and Llama 4 Maverick, were introduced on April 5. These models are quick, efficient, and accessible for everyone, developed to power smarter apps and tools. There is a next-level model in progress called Llama 4 Behemoth that was created to outsmart some of the top AI systems out there.
According to Insider Monkey’s fourth quarter database, 262 hedge funds held long positions in Meta Platforms, Inc. (NASDAQ:META), compared to 235 funds in the earlier quarter. Rajiv Jain’s GQG Partners was a notable stakeholder of the company, with 9.3 million shares worth $5.45 billion.
1. Alphabet Inc. (NASDAQ:GOOG)
Goldman Sachs’ Q4 2024 Stake Value: $8,970,269,282
P/E Ratio as of April 11: 18.21
Number of Hedge Fund Holders: 174
Alphabet Inc. (NASDAQ:GOOG), the Google parent company, is placed first on our list of the Goldman Sachs value stocks. At the end of Q4 2024, Goldman owned 47.3 million shares of Alphabet, worth nearly $9 billion. On April 10, Citi retained a Buy rating on GOOG but slashed the price target from $229 to $195. Analyst Maria Ripps sees robust progress in Google Cloud’s AI tools and infrastructure but trimmed the price target due to ad market uncertainty.
On March 18, Alphabet Inc. (NASDAQ:GOOG) announced its acquisition of cloud security firm Wiz for $32 billion in cash. This move is meant to solidify Google Cloud’s security tools, especially as AI use and multicloud setups become more common. Wiz, known for its user-friendly platform that works across major cloud providers, will stay compatible with AWS, Azure, and others.
Alphabet Inc. (NASDAQ:GOOG) declared a $0.20 per share quarterly dividend on February 7, 2025. The dividend was distributed on March 17, to shareholders listed by March 10. Overall, the company shelled out $2.4 billion in dividends for the fourth quarter of 2024.
According to Insider Monkey’s fourth quarter database, 174 hedge funds held stakes in Alphabet Inc. (NASDAQ:GOOG), up from 160 funds in the prior quarter.
Overall, GOOG ranks first among the Goldman Sachs Value Stocks: Top 12 Stock Picks. While we acknowledge the potential of value stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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