In this article, we will explore the 10 Best Value Stocks from the Goldman Sachs Portfolio.
Goldman Sachs Group Inc.’s Global Head of Hedge Fund Coverage, Tony Pasquariello, believes that investors should remain “responsibly bullish” as U.S. equities continue to hit record levels. According to a Bloomberg report from September 22, Pasquariello noted that markets are breaching all-time highs, primarily driven by the strength in mega-cap technology stocks.
He noted that history tends to favor markets when the Federal Reserve cuts interest rates during a period of economic acceleration, even if the valuations are elevated. He argued that the primary trend for equities remains positive, and advised investors to “own what you want to own” rather than try to time corrections. To guard against sharp losses, he suggested managing risk through the options market.
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Pasquariello said he favors the Nasdaq 100 over smaller stock groups like the Russell 2000 but stressed that the market isn’t without risks. With many investors already heavily invested, there may be less room for quick gains. Even so, he advised not to bet against the ongoing rally in big tech, which remains the main driver of stock market strength.
U.S. stocks have risen for three straight weeks, surprising many who expected September to be weak. The Bloomberg report highlighted that the strategists at Bank of America also believe that the tech rally could continue. Pasquariello summed it up by saying investors should avoid chasing the rally too aggressively but also avoid betting against large tech companies while momentum stays strong.
Against this backdrop, we now look at our selection of the 10 best value stocks from the Goldman Sachs portfolio.
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Our Methodology
To create our list of the best value stocks from the Goldman Sachs portfolio, we analysed the firm’s Q2 2025 13F portfolio filings. We narrowed our focus to companies with the largest portfolio weightings that also trade at a notable discount to the S&P 500 12-month forward P/E of 22.0x (as of September 24). From this group, we selected the 10 stocks most widely held by hedge funds, using Q2 2025 data from Insider Monkey. We then ranked the stocks by the number of hedge funds with active positions.
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).
Note: All pricing data is as of market close on September 24, 2025. Goldman Sachs portfolio value data is as of June 30, 2025.
Goldman Sachs Value Stocks: 10 Stocks to Buy
10. Energy Transfer LP (NYSE:ET)
Fwd. P/E: 12.1
Value in Goldman Sachs’ Portfolio: $1.3 Billion
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is one of the best value stocks in Goldman Sachs’ portfolio. Energy Transfer is one of the largest and most diversified midstream operators in North America, with an extensive portfolio spanning natural gas, NGLs, crude oil, and refined products.
The stock is a strong Buy as per the consensus of analysts, which still indicates more than 34% potential upside, and recent analyst views have been suggesting an optimistic outlook. In fact, on September 11 and 18, analysts from UBS and BofA reiterated a Buy rating, although they have reduced their price targets.
On the fundamental side, the company is performing well. As of Q2 2025, it owns and operates over 140,000 miles of pipelines and related infrastructure across 44 states, giving it unmatched scale and connectivity.
In the first half of 2025, Energy Transfer reported adjusted EBITDA of $8.0 billion, supported by robust volumes in NGL transportation and fractionation. That said, management has modestly adjusted its full-year 2025 adjusted EBITDA guidance and now expects it to be at or slightly below the lower end of its previous guidance of $16.1 billion to $16.5 billion. Importantly, nearly 90% of adjusted EBITDA is fee-based, which limits commodity exposure and provides stability in earnings.
The company is also focused on capital discipline and projects growth capital of $5.0 billion for 2025. Over the last few years, leverage has reduced to approximately 4.0x debt-to-EBITDA, which has strengthened Energy Transfer’s balance sheet significantly, paving the way for capitalizing on future opportunities.
Energy Transfer LP (NYSE:ET) owns and operates pipelines and associated energy infrastructure, offering transportation, storage, and terminaling services for natural gas, crude oil, natural gas liquids (NGLs), refined products, and liquefied natural gas.
9. Amgen Inc. (NASDAQ:AMGN)
Fwd. P/E: 13.6
Value in Goldman Sachs’ Portfolio: $1.2 Billion
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) is one of the best value stocks in Goldman Sachs’ portfolio. On September 18, Piper Sandler analyst David Amsellem maintained a Buy rating on Amgen and with an unchanged price target of $342.
A few weeks before this update, William Blair analyst Matt Phipps, who also rates the stock a Buy, highlighted the importance of the company’s upcoming FORTITUDE-102 study results, which combine bemarituzumab with chemotherapy and Opdivo. A favorable outcome for this study could substantially enhance its market potential. Phipps believes that Amgen’s broader portfolio and its strong pipeline should underpin the company’s ability to create long-term value.
A good example of the underlying strength of Amgen’s pipeline is the recommendation for approval of Tezspire (tezepelumab) in the European Union (EU) on September 22. The therapy is being developed in collaboration with AstraZeneca PLC (NASDAQ:AZN) for the treatment of adult patients with chronic rhinosinusitis with nasal polyps (CRSwNP). This chronic inflammatory condition affects approximately 320 million people worldwide.
For the context of the Collaboration Agreement on Tezspire, AstraZeneca leads the development, and Amgen leads manufacturing. Costs and profits are shared equally by both companies, after AstraZeneca pays a mid-single-digit inventor royalty to Amgen.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that focuses on discovering, developing, and manufacturing innovative therapies in the areas of oncology, cardiovascular disease, inflammation, and rare diseases.
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