The stock market has fallen more than many Wall Street experts expected this year, so some investors are looking for less conventional, more contrarian ideas. Goldman Sachs’ Deep Mehta compiled a list of stocks that Goldman analysts rate a buy while more than half of all other Wall Street analysts do not. “These names appear underappreciated by the market and could generate alpha for investors with a contrarian view. For each of the below, GS estimates are at least 2% above consensus in 2022E,” Mehta said in a note to clients last week. Source: Goldman Sachs Hotel chain Marriott is one of the biggest stocks on the list by market cap, and it is also on Goldman’s conviction list. The hotel stock has slightly outperformed the broader market year to date, but has dropped more than 18% in June, as fears of an economic slowdown have hurt travel stocks. Energy producers have also struggled in recent weeks, though the sector is still up for the year. Goldman’s list includes ExxonMobil , the largest oil and gas producer in the U.S., and a smaller player in refining, Tennessee-based Delek US Holdings . Restaurant stock Shake Shack is also on the Goldman list. Restaurants have been viewed skeptically by some investors as inflation and labor costs have stayed stubbornly high. Shake Shack raised prices sharply in March, and management has indicated that the company could hike prices even further. In addition to cost pressures, the chances of a recession have grown in recent weeks, and it is unclear how Shake Shack’s relatively brief operating history will hold up in a downturn. “This company has never really lived through a full cycle – the consumer cycle. And so … we don’t really know how our guests will behave in this,” CFO Katherine Fogertey said at a Jefferies conference on June 20, according to a transcript from FactSet. For investors looking for a stock that has fallen far below an industry yardstick, regional bank KeyCorp could be an option. Key’s stock has dropped nearly 23% this year, while the Financial Select Sector SPDR Fund (XLF) is down about 17%. — CNBC’s Michael Bloom contributed to this report.
