Goldman Sachs has recently updated its Conviction Lists for both the U.S. and Asia-Pacific regions, highlighting companies with strong growth potential and resilience. Notably, Johnson & Johnson (NYSE: JNJ) has been added to the U.S. Conviction List, while Axis Bank (NSE: AXISBANK) has been included in the Asia-Pacific roster.
Johnson & Johnson (JNJ)
Goldman Sachs describes Johnson & Johnson as a “stable, defensive grower with the industry’s strongest balance sheet.” The firm emphasizes the company’s continued high-return-on-invested-capital (ROIC) investments in its Innovative Medicines segment and a robust pipeline of drugs in trial stages. These factors are expected to offset potential challenges, such as the impending patent expiration of its key drug, Stelera.
Axis Bank (AXISBANK)
In the Asia-Pacific region, Axis Bank has been added to the Conviction List due to its improving profitability prospects. Goldman Sachs anticipates an enhancement in Axis Bank’s profitability in the second half of fiscal year 2026 through fiscal year 2027, driven by bottoming net interest margins, improved systemic liquidity, and controlled costs. Additionally, Axis Bank trades at a discount compared to peers like HDFC and ICICI, with expectations that this valuation gap will narrow as profitability improves.
