Goldman Sachs expands U.S. conviction stock list with Tyson Foods, Block

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Goldman adds Tyson, Block to list

Highlights

Goldman Sachs added Tyson Foods, Block, TPG, and Casella Waste Systems to its June conviction list, with price targets of $81, $95, $61, and $120 respectively.
Tyson Foods and Block gained spots due to diversified operations, earnings growth, and margin expansion, while TPG and Casella reflect bets on sector recovery and post-acquisition synergies.
The June reshuffle reflects Goldman's focus on U.S. stocks demonstrating strong fundamentals and operational execution across diverse sectors, rather than following a single macro theme.

June portfolio changes and stock rationale

As reported by CNBC, Goldman Sachs added Tyson Foods, Block, TPG and Casella Waste Systems to its June conviction list as part of its monthly reshuffling, while removing Ares Management, Wynn Resorts and Kontoor Brands.

Tyson Foods joined the list as Goldman pointed to the meat processor's diversified protein portfolio, operational improvements and exposure to strong food demand trends. The bank said it expects continued earnings growth and further margin expansion at the company, whose shares are up nearly 3% this year. Goldman set an $81 price target, implying nearly 33% upside from Friday's close.

Block also entered the favored-stock group, with Goldman highlighting the fintech company's cash generation, market share gains and AI-driven productivity potential. Shares have risen about 19% in 2026, and Goldman assigned a $95 price target, suggesting 25% upside from Friday. The bank said growth in earnings per share this year and next could support further gains as Square and Cash App attract more users and improve wallet share.

TPG was added on the view that its growth platform remains undervalued despite pressure across the broader alternative asset manager sector. Goldman said investor concerns about the durability of annual growth have weighed on the group, but it sees stronger-than-feared expansion in private credit, wealth management and private equity. The bank's $61 price target indicates about 43% upside from Friday's close.

Casella Waste Systems rounded out the new additions. Goldman said the waste management company is moving past integration challenges tied to its 2023 acquisition of GFL Environmental assets in Pennsylvania, Delaware and Maryland, with synergy realization now becoming the focus. Its $120 price target implies potential upside of 46% from Friday's close.

Implications for U.S. sector positioning

Goldman's updated basket now contains 21 stocks that the bank describes as its most differentiated fundamental buy ideas across its U.S. coverage universe. The latest additions span food processing, fintech, private equity and waste management, indicating a broad sector approach rather than a narrow thematic bet.

The June changes also show Goldman favoring companies where it sees a combination of earnings momentum and improving margins, even when recent share performance has diverged sharply. Tyson and Block have already posted gains this year, while TPG shares have fallen 32%, suggesting the bank is balancing momentum names with recovery and rerating opportunities.

For investors, the reshuffle offers a readout on where one of Wall Street's largest banks sees relative value in the U.S. equity market. The emphasis on operational execution, pricing power, customer growth and post-acquisition integration points to a stock-picking environment driven more by company fundamentals than by a single macro trade.

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