The ongoing tensions in the Middle East continue to pressure global financial markets, as geopolitical risks push oil prices higher and intensify market concerns. Simultaneously, the upward momentum that markets accumulated earlier this year has begun to wane, prompting investors to reassess future trajectories.
Ben Snider, a strategist at Goldman Sachs, believes that while significant headwinds currently exist, their impact has likely been largely priced into the market. He notes that since the January highs, the S&P 500’s downward trajectory has aligned with the average historical pattern following geopolitical risk events. Goldman Sachs’ baseline expectation is that the market will ultimately follow this historical pattern and resume its upward trend.
Snider suggests that although the current outlook incorporates higher oil prices, weaker US GDP growth, and later Fed easing compared to previous expectations, these macro headwinds appear to be largely digested by the market. The fundamental engine of earnings growth remains operational, and valuations, while still high, have retreated compared to several months ago.
Based on this assessment, Goldman Sachs analysts recommend two stocks worth watching.
One of Goldman Sachs’ top picks is the fintech company Fidelity National Information Services. The company offers a broad range of digital financial services, operating in 61 countries with approximately 57,000 employees. Last year, the company announced a major business restructuring, selling its Worldpay stake for $6.6 billion while acquiring the Issuer Solutions business for $12 billion, aiming to streamline operations.
Financial data shows that FIS reported Q4 2025 revenue of $2.81 billion, an 8% year-over-year increase, beating expectations. Adjusted free cash flow for the full year 2025 reached $2.2 billion, up 18% year-over-year.
Goldman Sachs analyst Will Nance is optimistic about the stock, primarily based on its business streamlining and robust cash generation capabilities. He believes FIS has transformed into a pure-play bank software and infrastructure solutions company, with the asset swap significantly improving earnings quality and free cash flow profile. Nance rates FIS a “Buy” with a $70 price target, implying 39% upside potential over the next year.
The stock has recently been covered by 17 analysts, including 11 “Buy” and 6 “Hold” ratings, resulting in a consensus rating of “Moderate Buy.” The current stock price is $50.23, with an average price target of $67.13, suggesting approximately 34% upside.
Another Goldman Sachs pick is the utility company NRG Energy. As one of the largest retail power producers in the US and Canadian markets, it has a market capitalization of $33 billion and approximately 25 gigawatts of power generation capacity. At the end of January, the company completed a major acquisition, purchasing 18 natural gas-fired power plants from LS Power, doubling its generation capacity.
Financially, NRG reported Q4 2025 revenue of $7.75 billion, a 13% year-over-year increase, beating estimates by $1.11 billion. Adjusted earnings per share came in at $1.04, 15 cents above expectations.
Goldman Sachs analyst Carly Davenport believes the stock is not expensively valued, with a forward EV/EBITDA multiple of 7.5x, below its post-acquisition average. She rates it a “Buy” with a $197 price target, expecting 27% upside over the next year.
NRG has recently received ratings from 11 analysts, including 9 “Buy” and 2 “Hold,” resulting in a consensus rating of “Strong Buy.” The current stock price is $154.75, with an average price target of $199.82, indicating approximately 29% upside.
