The US-led campaign against Iran is now entering its second month, prompting a wave of volatility in the markets. Initially, stock prices dipped in response to soaring oil prices and rising inflation concerns. However, the overall market decline has remained surprisingly restrained, with decreases largely confined to the mid-single-digit range rather than more drastic falls.
Goldman Sachs’ head of asset allocation, Christian Mueller-Glissmann, identifies several key factors contributing to this relative stability. The effects of last year’s “Big Beautiful Bill” legislation, alongside a robust GDP growth rate, are providing a solid foundation for the markets during this turbulent time. These circumstances may serve as an anchor, potentially guiding markets through uncertainty and into 2026.
Mueller-Glissmann articulated a baseline expectation where markets are likely to recover following continued volatility. He assesses that recession is unlikely for the remainder of the year, and he foresees no alarming inflation spikes. This perspective suggests a stabilization of growth expectations and a potential recovery for 60/40 portfolios. Furthermore, his machine-learning model indicates a low probability of sustained decline in these portfolios over the next year, attributing the stable outlook to steady growth, moderated inflation pressures, and ongoing policy easing.
Following this optimistic sentiment, Goldman Sachs analysts are spotlighting specific stocks as potential buys in the current market climate. Two notable picks include Smurfit Westrock and MiniMed Group, both rated as ‘Strong Buy’ with significant upside potential.
Smurfit Westrock (SW) operates within the packaging industry and has been establishing its presence since 1934. Although it may not be a widely recognized name, the company offers an extensive range of packaging solutions, from conventional cardboard to specialized products for sectors such as pharmaceuticals and food and beverage. Smurfit Westrock also emphasizes innovation in its packaging solutions, which caters to diverse client requirements, enhancing its market competitiveness.
The financial performance of Smurfit Westrock indicates resilience, reporting $7.58 billion in revenue for the fourth quarter of 2025. While this figure remained flat year-over-year, it surpassed analyst expectations. The company’s EPS came in at $0.18, slightly below expectations.
Goldman Sachs analyst Gabriel Simoes believes that Smurfit is well-positioned in the packaging sector, particularly benefitting from a positive outlook for the US market compared to others. The company’s significant US exposure—approximately 59% of its EBITDA forecast for 2025—alongside tariff protections, bodes well for long-term profitability. Consequently, Simoes has assigned a Buy rating to SW shares with a price target of $49, which indicates nearly a 23% potential upside. With an average target of $58.10, the stock holds an implied upside of about 46%, supported by unanimous positive analyst reviews.
MiniMed Group (MMED), a relatively new entity in the market, emerged from a spinoff from Medtronic earlier this year, creating a specialized focus on diabetes care products. With an established reputation in automated insulin delivery systems, MiniMed aims to redefine diabetes management through continuous monitoring and insulin adjustments.
Through its association with Medtronic, MiniMed capitalizes on over 40 years of experience in the medical device sector. The spinoff allowed the company to raise approximately $560 million during its IPO, albeit at a lower-than-expected price range. Medtronic retains a significant ownership stake of 90%.
Goldman Sachs analyst David Roman expresses confidence in MiniMed’s prospects due to its combination of established products and a promising pipeline that could drive future growth. He indicates that the market is presently undervaluing the company’s potential, as improvements in operating leverage could substantially enhance its EBITDA by FY30. Roman rates MMED as a Buy, providing a price target of $24, suggesting a 61% upside. Current trading at $14.92, with an average target of $21.55, indicates a robust potential for growth, reflecting a Strong Buy consensus based on recent analyst evaluations.
Investment decisions should always involve personal analysis and caution, considering the inherent risks and volatility of the market landscape.
