Goldman's top catch-up stocks to play growth in 2026
Dec. 14, 2025 7:01 PM ET
By: Kim Khan, SA News Editor
Cyclical stocks have rallied sharply in recent weeks, outperforming Defensives for a record 14-straight sessions before pulling back, according to Goldman Sachs.
But despite the rebound and growing economic optimism among investors, Goldman says markets are still not fully pricing in a stronger growth outlook for 2026.
Goldman’s internal equity rotations and cross-asset signals suggest markets are effectively pricing about 2.0% real GDP growth next year, in line with consensus forecasts but below Goldman's 2.5% estimate. Within cyclicals, consumer stocks and companies tied to nonresidential construction stand out as laggards relative to what would typically be expected if investors were fully discounting faster growth.
Goldman highlights a screen of stocks with exposure to nonresidential construction, noting that Ground Transportation and Building Products account for more than half of the group — sectors that could see catch-up performance if the market begins to price a stronger economic acceleration.
Steel Dynamics, Inc. ( STLD) — YTD total return 53%
Commercial Metals Company ( CMC) — YTD total return 46%
Nucor Corporation ( NUE) — YTD total return 45%
Analog Devices, Inc. ( ADI) — YTD total return 36%
Armstrong World Industries, Inc. ( AWI) — YTD total return 34%
Zurn Elkay Water Solutions Corporation ( ZWS) — YTD total return 29%
Norfolk Southern Corporation ( NSC) — YTD total return 28%
Allegion Public Limited Company ( ALLE) — YTD total return 27%
Microchip Technology Incorporated ( MCHP) — YTD total return 24%
CSX Corporation ( CSX) — YTD total return 17%
XPO, Inc. ( XPO) — YTD total return 14%
Core & Main, Inc. ( CNM) — YTD total return 12%
Union Pacific Corporation ( UNP) — YTD total return 6%
Canadian Pacific Kansas City Limited ( CP) — YTD total return 5%
Jacobs Solutions Inc. ( J) — YTD total return 4%
A. O. Smith Corporation ( AOS) — YTD total return 3%
Graco Inc. ( GGG) — YTD total return 1%
Stanley Black & Decker, Inc. ( SWK) — YTD total return 0%
Canadian National Railway Company ( CNI) — YTD total return -1%
AECOM ( ACM) — YTD total return -6%
Honeywell International Inc. ( HON) — YTD total return -7%
Carlisle Companies Incorporated ( CSL) — YTD total return -8%
Old Dominion Freight Line, Inc. ( ODFL) — YTD total return -9%
Axalta Coating Systems Ltd. ( AXTA) — YTD total return -11%
PPG Industries, Inc. ( PPG) — YTD total return -12%
Lennox International Inc. ( LII) — YTD total return -15%
Carrier Global Corp. ( CARR) — YTD total return -20%
TFI International Inc. ( TFII) — YTD total return -23%
Saia, Inc. ( SAIA) — YTD total return -25% |
