Goldman Sachs Identifies Market Shift and Recommends Idexx Laboratories and Zeta Global as Buy Opportunities in 2026

Goldman Sachs has signaled a notable shift in the U.S. stock market towards favoring companies that benefit from secular growth trends rather than those reliant on economic cycles. This insight comes amid a slower overall economic growth environment, where earnings growth is becoming a more critical driver of stock performance than valuation expansion[1].

Market Shift Towards Secular Growth

Ben Snider, Goldman Sachs’ Chief U.S. Equity Strategist, explains that during periods of positive but decelerating economic growth, equity returns tend to be driven by earnings growth rather than valuation increases. In such environments, companies anchored in long-term secular trends generally outperform those tied to cyclical factors[1]. A prime example of this trend is the dominant role of artificial intelligence (AI) in powering recent market gains.

Goldman Sachs’ Stock Picks: Idexx Laboratories and Zeta Global

Building on these market dynamics, Goldman Sachs recommends two stocks positioned to benefit from sustained secular growth:

1. Idexx Laboratories (IDXX)

Idexx Laboratories is a leading global player in veterinary and scientific diagnostics, with a market capitalization of approximately $44 billion. The company offers both independent lab testing and on-site diagnostic tools focused on companion animals like cats and dogs, as well as livestock[1].

Recurring Revenue Model: Idexx’s instruments are designed to produce ongoing consumable sales and lab services, with recurring revenue making up a critical and growing proportion of its income. In 2025, 79% of Idexx’s revenue was from recurring companion-animal diagnostics.
Strong Financials: In Q2 2026, the company reported $1.22 billion in revenue, up nearly 10% year-over-year, exceeding expectations by over $16 million. Non-GAAP earnings per share (EPS) stood at $4.27, surpassing forecasts.
Growth Catalysts: Analyst Matt Dellatorre of Goldman Sachs highlights several growth drivers including new product launches, upcoming instrument announcements, software and AI innovations, and operational excellence, leading to a 12-month price target of $740, implying about 34% upside from current levels[1].

2. Zeta Global (ZETA)

Zeta Global operates at the intersection of AI and marketing technology, offering the Zeta Marketing Platform (ZMP) and the Zeta Data Cloud, which harness AI to analyze consumer data and automate marketing decisions[1].

AI-Driven Expansion: As enterprises increasingly seek sophisticated, AI-powered marketing tools, Zeta is well positioned to capture market share through enhanced customer data platforms and automation.
Robust Revenue Growth: The company reported its 20th consecutive quarter of strong earnings in Q2 2026 with revenue of nearly $443 million, beating forecasts by more than $22 million and growing over 43% year-over-year.
Positive Analyst Outlook: Goldman analyst Callie Valenti highlights Zeta’s platform breadth, market share gains, strategic partnerships, and recent M&A activities as key positives. The 12-month price target is $45, suggesting a 32% upside[1].

Comparative Financial Sector Outlook: Goldman Sachs vs. JPMorgan Chase

An additional perspective to consider for financial sector investors comes from a comparison between Goldman Sachs and JPMorgan Chase by The Globe and Mail. While Goldman Sachs is focused on investment banking and capital markets, JPMorgan Chase offers broader retail and commercial banking services[3].

Profitability and Valuation: JPMorgan shows higher operating margins and net income, but Goldman Sachs currently holds a slight valuation advantage based on Forward Price-to-Earnings ratios and dividend yields.
Dividend Income: Goldman Sachs offers a higher dividend yield of around 2.1% compared to JPMorgan’s 1.9%, potentially attractive for income-oriented investors.
Risk Profiles: Both face distinct regulatory, market, and operational risks in their respective domains, influencing investor choice based on risk appetite[3].

Goldman Sachs Stock Performance and Market Position

Goldman Sachs recently reported strong earnings exceeding expectations, with Q3 2026 EPS of $17.01 surpassing the $12.86 consensus estimate and revenues growing 23% year-over-year to $18.68 billion[2]. Despite some selling pressure and bearish notes from certain analysts, the firm’s focus on AI-driven trading and asset management expansion underscores its ongoing market relevance. The company is also expanding its ETF platform via a multi-billion-dollar acquisition, diversifying fee-based revenue streams[2].

Investment Implications

For investors navigating a market with slowing growth, Goldman Sachs suggests prioritizing companies exhibiting strong secular growth traits such as recurring revenue models, technology innovation, and AI integration. Idexx Laboratories and Zeta Global exemplify these attributes and offer promising upside potential based on their recent performance and analyst forecasts.

Meanwhile, evaluating financial sector stocks such as Goldman Sachs and JPMorgan Chase requires balancing profitability, valuation, dividend yield, and risk exposure. Goldman Sachs presents a compelling case for those attracted to institutional market leadership and income potential, though investors should consider their individual investment goals and risk tolerance.

“Positive but decelerating growth has historically been associated with positive but moderating S&P 500 returns. Equity returns in these environments have historically been driven by earnings growth rather than by valuation expansion. Within the market, a backdrop of positive but decelerating growth usually supports the outperformance of companies with secular growth over those with cyclical growth.” — Ben Snider, Goldman Sachs[1]

Sources

Jessica

Jessica is a passionate food content writer who loves exploring delicious recipes, culinary trends, and cooking tips. She creates engaging, easy-to-follow content that inspires readers to discover new flavors and enjoy the art of cooking.