Analysts at Wall Street investment bank Goldman Sachs (GS) are forecasting “quiet outperformance” from value stocks this year.
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In a note to clients, Goldman Sachs said that its tracker of low-valuation stocks versus high-valuation peers has “continued to outperform” since the beginning of the year after returning 15% in the second half of 2025.
Value stocks are defined as shares of established, financially stable companies that appear cheap relative to their fundamentals and trading below their intrinsic worth. Goldman Sachs forecasts that value stocks will continue to outperform this year due to a myriad of factors.
The Bull Case for Value Stocks
Value stocks are marching higher as investors rotate capital out of the mega-cap technology companies such as Nvidia (NVDA) and Alphabet (GOOGL) that dominated the market in 2025. Goldman Sachs says that accelerating U.S. economic growth could give value stocks a further boost in the months ahead.
Other reasons to be bullish on value stocks include what Goldman Sachs calls “friendly” monetary policy from the U.S. Federal Reserve, accelerating U.S. economic growth, and solid corporate earnings. However, Goldman Sachs added that the duration and magnitude of value stocks’ outperformance in 2026 will “likely fall short of the largest value rallies in the past” that included a 35% gain in 2021 and early 2022.
Is GS Stock a Buy?
Goldman Sachs’ stock has a consensus Moderate Buy rating among 11 Wall Street analysts. That rating is based on five Buy and six Hold recommendations issued in the last three months. The average GS price target of $934.60 implies 2.85% downside from current levels.
