US stocks have been in a sharp uptrend over the past two months partly because the White House and President Xi’s office agreed to a 90-day pause on reciprocal tariffs on each other’s products.
However, experts at Goldman Sachs are fully convinced that there are still a number of names that have significant further upside despite a challenging macroeconomic backdrop in the second half of 2025.
These include BJ’s, Valvoline, and Kontoor Brands. Let’s explore the reasons why Goldman Sachs is bullish on these three and what each of them has in store for investors moving forward.
Valvoline Inc (NYSE: VVV)
Goldman Sachs sees the retail automotive services company as a “best-in-class” stock that’s well-positioned for further gains in the back half of 2025.
Its analyst Mark Jordan recommends owning Valvoline stock at current levels as VVV is strongly positioned “no matter the macroeconomic environment.
Additionally, the NYSE-listed firm has limited exposure to higher tariffs as well.
“With only 6% market share of the do-it-for-me oil change market, strong brand name recognition and a solid operating playbook, we see the opportunity for significant upside over the long term,” he told the clients in his latest research note.
In short, Goldman Sachs believes scale operators with a strong brand name, like Valvoline, have a meaningful competitive advantage in the retail automotive services market.
Kontoor Brands Inc (NYSE: KTB)
The American clothing company has been a disappointment for its shareholders since early May, but a Goldman Sachs analyst asserts KTB shares will recover rather swiftly in the second half of 2025.
According to Brooke Roach, Kontoor Brands stock is super attractive at the time of writing because its Lee brand is stabilising and “Wrangler brand momentum remains robust and is supported by strong western trends.
Roach recommends owning KTB also for its $900 million acquisition of Helly Hansen. At current levels, Kontoor offers an “attractive risk/reward … [and] relatively attractive positioning as a result of current tariff policy,” she added.
Note that Kontoor Brands is a dividend stock that currently yields 3.35%, which makes it all the more attractive to own in 2025.
BJ’s Wholesale Club Holdings Inc (NYSE: BJ)
Shares of the membership-only warehouse club chain are worth owning despite solid year-to-date performance due to “strong tariff trends,” according to Goldman Sachs analysts.
The investment firm sees BJ’s stock benefiting from “unit volume growth in grocery categories”. Additionally, improved customer engagement across general merchandise could unlock earnings upside in the back half of this year as well.
In its latest research note, Goldman Sachs reiterated its buy rating on BJ’s shares with a price target of $130, which indicates potential for another 18% rally from current levels.
BJ’s Wholesale Club Holdings does not currently pay a dividend, though.
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