If you’re aiming to outperform the stock market in 2025, Goldman Sachs suggests a strategy: capitalize on the expected surge in mergers and acquisitions (M&A) in corporate America by investing in companies likely to be involved in such deals. Here’s what you need to know:
When an M&A deal is announced, the stock price of the target company often experiences a significant increase. Over time, the stock of the newly combined company also tends to appreciate, as mergers typically result in cost reductions, improved efficiency, and stronger earnings, which boost investor confidence.
Goldman Sachs has identified several publicly traded companies it believes have a strong likelihood of being acquired in the next year. These include:
Altimmune (ALT), Blueprint Medicines Corp. (BPMC), BridgeBio Pharma (BBIO), Day One Biopharmaceuticals (DAWN), Insmed Incorporated (INSM), Iovance Biotherapeutics (IOVA), Krystal Biotech (KRYS), Madrigal Pharmaceuticals (MDGL), Maravai Lifesciences Holdings (MRVI), Sarepta Therapeutics (SRPT), and TripAdvisor (TRIP).
Since 2015, 9% of the companies highlighted by Goldman Sachs have been involved in M&A activity.
You can details in Goldman Sachs 2024 M&A Outlook report
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
