Updated

Updated · CNBC · Jul 5

Goldman Sachs Backs 3 Beaten-Down Stocks to Outperform in July as O'Reilly, NetEase, Tradeweb Lag

Updated

Updated · CNBC · Jul 5

Goldman Sachs Backs 3 Beaten-Down Stocks to Outperform in July as O'Reilly, NetEase, Tradeweb Lag

Q: Is O'Reilly's 'undervalued' status less about market pressure and more about a looming $10 billion acquisition?

No. The evidence points more to a temporary stock overhang from the proposed deal than to Goldman’s core reason for calling O’Reilly undervalued. Goldman Sachs’ bullish view was based mainly on O’Reilly’s operating performance. Analyst Kate McShane cited stronger second-quarter trends than peers, favorable store locations, limited competition, and a pattern of outperformance. That fits with O’Reilly’s recent results: first-quarter revenue rose 10.2%, same-store sales increased 8.1%, and management continued expanding stores. Those are the fundamentals behind the “buy the dip” call. The reported cash bid of more than $10 billion for Genuine Parts’ auto-parts business appears to be a separate source of pressure on the shares. News of the potential acquisition reportedly pushed O’Reilly stock down about 5%, suggesting investors are worried about deal size, integration risk, and capital deployment rather than rewarding the company for the move. In that sense, the acquisition may help explain why the stock dipped, but not why Goldman thinks the business is undervalued. So the better reading is that O’Reilly’s undervaluation case rests on strong execution and market position, while the looming acquisition is a near-term risk factor that may have created the dip Goldman wants investors to buy. If the deal proceeds, it could remain a meaningful swing factor for valuation, but the current “undervalued” label is tied more to fundamentals than to the acquisition itself.

1 articles · Updated · CNBC · Jul 5

Goldman Sachs said several buy-rated stocks still have room to run in July, highlighting O'Reilly, NetEase, Tradeweb and Liftoff Mobile as undervalued despite recent share-price weakness.
O'Reilly is down 1% in 2026, but Goldman said second-quarter data checks suggest stronger comp trends than peers and limited nearby competition, easing fears of a softer quarter.
NetEase has fallen more than 7% this year, yet Goldman expects further margin expansion and sees a July game launch supporting a stock it calls a resilient 'non-AI' compounder.
Tradeweb is off more than 4% in 2026 after concerns over revenue growth, credit competition and tokenization risks, but Goldman recently upgraded the stock to buy, arguing sentiment has outrun fundamentals.

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CNBC22h ago

Goldman Sachs Names Undervalued Stocks O'Reilly, NetEase, Tradeweb to Outperform

Is O'Reilly's 'undervalued' status less about market pressure and more about a looming $10 billion acquisition?

As Goldman backs both AI and 'non-AI' stocks, what is the true key to finding undervalued tech companies now?

How is Tradeweb turning a perceived market risk, asset tokenization, into its next major competitive advantage?

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1 total

Left100%

CNBC22h ago

Goldman Sachs Names Undervalued Stocks O'Reilly, NetEase, Tradeweb to Outperform

Goldman Sachs Backs 3 Beaten-Down Stocks to Outperform in July as O'Reilly, NetEase, Tradeweb Lag

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