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.
8. Qualcomm Inc. (NASDAQ:QCOM)
Fwd. P/E: 14.3
Value in Goldman Sachs’ Portfolio: $1.4 Billion
Number of Hedge Fund Holders: 76
Qualcomm Inc. (NASDAQ:QCOM) is one of the best value stocks in Goldman Sachs’ portfolio. With its next-generation mobile communication solutions, the company is powering ecosystems across mobile, computing, and wireless applications worldwide.
A September 18 report from Adobe (NASDAQ:ADBE) stated that, in its quest to offer the best services and enhance its marketing organization, Qualcomm will utilize Adobe’s generative AI platform, GenStudio, to accelerate and scale its content creation supply chain. Leveraging the GenAI capabilities of this platform, QCOM will not only be able to produce and customize content but also measure personalized experiences.
Additionally, QCOM is focusing on expanding its automotive and IoT businesses. At the Deutsche Bank 2025 Technology Conference, held in late August, Nakul Duggal, Qualcomm‘s Group GM for Automotive, Industrial & Embedded IoT (Internet of Things), and Cloud Computing, said that the company’s heavy investment in software and in creating a comprehensive portfolio of semis, has helped it log a CAGR of 40% over the last five years. The company has guided that its automotive revenue is expected to reach $9 billion by 2030, up from $4 billion in 2025.
Qualcomm Inc. (NASDAQ:QCOM) is a global leader in wireless technology, best known for pioneering 3G, 4G, and 5G connectivity. The company designs and licenses advanced semiconductor products, including Snapdragon mobile processors, supporting smartphones, IoT devices, and automotive systems.
7. Cisco Systems Inc. (NASDAQ:CSCO)
Fwd. P/E: 16.7
Value in Goldman Sachs’ Portfolio: $2.3 Billion
Number of Hedge Fund Holders: 81
Cisco Systems Inc. (NASDAQ:CSCO) is one of the best value stocks in Goldman Sachs’ portfolio. On September 22, 2025, Bank of America Securities analyst Tal Liani reitereated his bullish stance on the stock with a Buy rating with an unchanged price target of $85. Liani pointed to four major growth drivers supporting the outlook: the ongoing campus switching refresh cycle, increasing share in hyperscaler AI infrastructure, improving momentum in security, and synergies from the Splunk acquisition.
The analyst highlights that Cisco’s networking business, its largest revenue contributor, continues to benefit from cloud and enterprise demand. While security growth has been uneven, management expects Splunk integration to expand its product offerings and improve competitive positioning.
Valuation also lends support to the case, with Cisco trading at roughly 17 times forward EV/FCF, which the analyst finds attractive. This relative valuation discount, combined with visible growth catalysts, underpins his confidence in the company’s long-term outlook.
Cisco Systems Inc. (NASDAQ:CSCO) is a networking and communications technology company that provides hardware, software, and services, including routers, switches, cybersecurity solutions, and cloud-based collaboration tools.
6. AT&T Inc. (NYSE:T)
Fwd. P/E: 14.0
Value in Goldman Sachs’ Portfolio: $1.5 Billion
Number of Hedge Fund Holders: 83
AT&T Inc. (NYSE:T) is one of the best value stocks in Goldman Sachs’ portfolio. On September 18, Frank Louthan, an analyst at Raymond James, raised the price target on the stock from $31 to $33 and maintained his Buy rating.
The analyst cited three metrics that are particularly tracked for telecommunication companies. These three metrics are Wireless post-paid subscriber growth, EPS, and free cash flow growth. According to his analysis, AT&T is executing its strategy effectively and should be able to perform well on these metrics. For the next 12 months, Louthan also called AT&T its top large-cap total return opportunity.
Telecom stocks are generally supported by stable wireless demand, disciplined capital allocation, and consistent cash generation that underpins dividends and debt reduction. A couple of days before Louthan, JPMorgan analyst Sebastiano Petti had commended AT&T’s capital return strategy, including $20 billion in share repurchases till 2027, as one of the factors to support his Buy rating. Petti also believes that the company will gain share in the convergence market with the help of its recent acquisitions of Lumen’s consumer fiber business and spectrum from EchoStar.
AT&T Inc. (NYSE:T) is a major U.S. telecommunications and media company offering wireless, broadband, and fiber services to millions of customers.
5. Pfizer Inc. (NYSE:PFE)
Fwd. P/E: 7.9
Value in Goldman Sachs’ Portfolio: $735 Million
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the best value stocks in Goldman Sachs’ portfolio. The company appears to have seized an opportunity that may help it strengthen its portfolio with newer therapies in the face of looming patent expiries for some of its key drugs, which could reduce revenue by $15 billion by the end of this decade.
On Monday, September 22, Bloomberg reported that Pfizer is acquiring Metsera Inc. (NASDAQ:MTSR), a clinical-stage biotech company that develops therapies for obesity and related diseases. The company is paying an enterprise value of $4.9 billion in cash for the deal, with the potential deal value rising to $7.3 billion if regulatory milestones are met.
The purchase price is at a substantial 43% premium to Metsera’s last closing price, which indicates Pfizer’s determination (or some may call it desperation) to gain a stronger position in the fast-growing obesity market. The deal comes after Pfizer’s own obesity pill program was stopped earlier this year due to safety concerns, leaving it behind rivals Novo Nordisk and Eli Lilly.
The obesity therapies market is already growing rapidly and is expected to reach $100 billion by 2030.
By acquiring Metsera, Pfizer gains access to a robust pipeline of innovative weight-loss drugs. This includes its under-development amylin-based drug, MET-233i, which has shown encouraging results in weight loss tests. Amylin drugs are seen as a potential alternative to GLP-1 treatments, offering the possibility of fewer side effects.
Mizuho Securities analyst Jared Holz called the deal a smart move and expects Pfizer to receive a much-needed head start in a large growth market.
Metsera, founded in 2022, had a relatively short journey as a publicly listed company, as it was listed in January of this year with an IPO price of $18.
Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical and biotechnology company that develops and manufactures medications and vaccines for immunology, oncology, cardiology, endocrinology, and neurology.
4. Merck & Co. Inc. (NYSE:MRK)
Fwd. P/E: 9.0
Value in Goldman Sachs’ Portfolio: $1.5 Billion
Number of Hedge Fund Holders: 92
Merck & Co. Inc. (NYSE:MRK) is one of the best value stocks in Goldman Sachs’ portfolio. On September 19, the company announced FDA approval for KEYTRUDA QLEX injection, the first subcutaneous version of its blockbuster cancer drug KEYTRUDA. Unlike the traditional intravenous (IV) form, QLEX can be administered subcutaneously (under the skin) in as little as one minute, providing patients and doctors with a faster and more convenient option.
This approval further strengthens Merck’s leadership in oncology, where KEYTRUDA is already a strong growth driver with approvals across 38 cancer indications. The new format is expected to expand adoption, particularly in community clinics and smaller practices where managing lengthy IV infusions can be difficult. It also enhances patient experience with both three-week and six-week dosing schedules.
Clinical results confirmed QLEX delivers safety and efficacy comparable to IV KEYTRUDA. With KEYTRUDA already generating multi-billion-dollar sales annually, the subcutaneous version provides Merck with a new lever to defend and grow its oncology franchise.
Merck & Co. Inc. (NYSE:MRK) is a global healthcare company that delivers medicines and vaccines, including those for oncology, infectious diseases, immunology, and cardiometabolic conditions.
3. The Progressive Corp. (NYSE:PGR)
Fwd. P/E: 13.0
Value in Goldman Sachs’ Portfolio: $1.0 Billion
Number of Hedge Fund Holders: 99
The Progressive Corp. (NYSE:PGR) is one of the best value stocks in Goldman Sachs’ portfolio. In a September 22 update, Morgan Stanley analyst Bob Huang marginally lowered the price target on the stock to $265 from $267, but maintained his Hold rating.
The analyst’s change to the price target follows the company’s release of its August monthly performance results. Huang has lowered his assumptions for the 2025 total combined ratio and modestly lowered premium growth forecasts for 2026 and 2027.
For the month of August, the company reported a 2.4% year-over-year decline in the combined ratio, which came in at 83.1%. The combined ratio is a key profitability metric for insurers, showing how efficiently they run their core underwriting operations.
However, BofA analyst Joshua Shanker maintained his positive stance in a September 17 report, with a Buy rating and a price target of $343, down from $347 previously. While the analyst lowered his EPS estimates after factoring in the monthly results, he commended the company’s margins and argued that his EPS estimates might be conservative.
The Progressive Corp. (NYSE:PGR) is one of the largest auto insurers in the U.S., offering insurance products across personal and commercial lines.
2. Citigroup Inc. (NYSE:C)
Fwd. P/E: 13.4
Value in Goldman Sachs’ Portfolio: $804 Million
Number of Hedge Fund Holders: 102
Citigroup Inc. (NYSE:C) is one of the best value stocks in Goldman Sachs’ portfolio. On September 23, 2025, Oppenheimer analyst Chris Kotowski reaffirmed a Buy rating on Citigroup, with a price target of $123, slightly trimmed from $124.
Kotowski pointed out that the banking sector is entering a period of steady earnings growth, with estimates showing low-teens growth expected in 2026. He supports his view by highlighting major trends that are visible now. First of all, he states that loan growth is improving and believes that credit card losses have already peaked. Additionally, capital ratios remain strong, M&A activity is picking up, and trading revenues are holding up well.
While Oppenheimer’s team of analysts views investment banks like Goldman Sachs and Morgan Stanley as richly valued, they consider commercial banks to be still trading at reasonable valuations. For this group, which includes Citigroup, the firm highlights five supportive factors: loan growth momentum, improved credit quality, benefits from asset repricing, share repurchases, and operating leverage.
Oppenheimer lists Citigroup among its top picks, alongside U.S. Bancorp, PNC, and Bank of America, positioning it as one of the better opportunities in the large-cap banking sector.
Citigroup Inc. (NYSE:C) is a leading global financial institution providing a broad range of banking and financial services.
1. Adobe Inc. (NASDAQ:ADBE)
Fwd. P/E: 17.4
Value in Goldman Sachs’ Portfolio: $1.5 Billion
Number of Hedge Fund Holders: 104
Adobe Inc. (NASDAQ:ADBE) is one of the best value stocks in Goldman Sachs’ portfolio. The company is facing increasing scrutiny over the monetization of its generative AI capabilities, which have fallen short of the expectations of some analysts. Adobe’s investments in these capabilities were expected to boost its Digital Media ARR growth. However, the results have been slower than anticipated, as Adobe continues to prioritize broader adoption. Due to the slower monetization and lack of near-term catalysts, analysts from Morgan Stanley and Mizuho Securities downgraded the stock to Hold on September 24. Both of them trimmed their price target sharply to $450 from $520 previously.
On the positive side, on the same day, Evercore ISI analyst Kirk Materne reiterated his bullish stance with a Buy rating, with an unchanged price target of $450. The analyst had already lowered his price target from $475 in his earlier note on September 12, following the company’s Q3 FY 2025 results.
While the company’s results had exceeded most metrics, Materne believes Adobe’s valuation already factors in a lot of uncertainty and doubts over its long-term growth trajectory. However, he also argues that it will take time for investor sentiment to turn positive, and such a change will require the company to show results on its AI-led growth initiatives and address competitive risks.
Adobe Inc. (NASDAQ:ADBE) is a global leader in creative, document, and digital experience software, providing tools for content creation, design, marketing, analytics, and customer engagement.
While we acknowledge the potential of ADBE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADBE and that has 100x upside potential, check out our report about this cheapest AI stock.
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