Goldman Sachs Two Stock Picks Could Be Big Winners in 2026

In a market that often rewards whatever is already popular, the real edge sometimes comes from looking where most investors are not paying attention. That is especially true when a major Wall Street firm identifies two companies with very different business models, but both tied to long-term trends that continue to strengthen. Goldman Sachs has recently highlighted exactly that kind of opportunity, referring to its Goldman Sachs Two Stock Picks, pointing to MiniMed Group and Smurfit Westrock as two under-the-radar stocks with meaningful upside potential.

The appeal of these names is not based on hype, momentum, or a short-lived market fad. Instead, it rests on something more durable: both companies sit in industries with real structural demand, and both appear to be at a point where the market may still be undervaluing their future earnings power. One is a newly public medical device company targeting the massive diabetes management market. The other is a global packaging leader benefiting from scale, merger synergies, and ongoing demand for corrugated materials. Goldman Sachs sees enough promise in both to assign Buy ratings and price targets that imply further room to run.

That combination of healthcare innovation and industrial execution makes the story especially interesting. It also makes the two stocks useful examples of how investors can think beyond the most obvious sectors and still find compelling ideas. In many ways, these are not flashy businesses, but that is exactly what makes them notable. The market often misprices companies that are easy to overlook, particularly when they are new to public markets, recently reorganized, or operating in industries that do not dominate headlines.

Why Wall Street Sometimes Loves the Quiet Names

Most investors are familiar with the usual stock-market narratives. Artificial intelligence, cloud computing, electric vehicles, and large-cap consumer technology tend to attract the most attention. Those themes are exciting, but they are also crowded. As a result, valuations can become stretched quickly, leaving less room for error and less opportunity for surprise.

By contrast, overlooked companies can still offer meaningful upside when a few things line up. A company may be entering a new growth phase, launching a product that changes its market position, or completing a merger that unlocks efficiency gains. If the market is slow to recognize those developments, the stock can remain undervalued even while the fundamentals improve.

That appears to be the setup with MiniMed Group and Smurfit Westrock. MiniMed is a relatively recent public listing focused on diabetes technology, while Smurfit Westrock is a newly formed industrial heavyweight created through a major merger. In both cases, Goldman Sachs appears to believe the market is underestimating what comes next.

MiniMed Group: A Focused Play on Diabetes Innovation

MiniMed Group (NASDAQ:MMED) stands out because it is not trying to be everything to everyone. It is a scaled medical technology company with a narrow but deep focus on diabetes management. That focus matters. In healthcare, specialization often creates stronger product positioning and more room to build a loyal customer base, especially when a company is addressing a chronic condition that requires constant care and repeated use of its products.

The diabetes market is a large and growing one. Millions of people worldwide manage the disease every day, and that number continues to rise as diagnosis rates increase and aging populations expand. At the same time, advances in medical technology are changing what treatment looks like. Traditional management relied heavily on manual monitoring and frequent intervention. Today, patients increasingly want solutions that are more automated, more discreet, and easier to integrate into daily life.

MiniMed’s product strategy is designed around that shift. Its insulin delivery systems and glucose monitoring technologies are aimed at simplifying the burden of care. That makes the company part of one of the more attractive sub-segments in healthcare: technology-enabled chronic disease management.

The Power of a Better User Experience

One of the most important trends in medical devices today is user experience. In the past, a device could be technically effective and still fail to gain traction if it was cumbersome or stressful to use. That is especially true in diabetes care, where patients must manage a condition every day, often for the rest of their lives.

MiniMed’s newer product offering is designed to reduce that friction. Its next-generation insulin pump system emphasizes discretion, smartphone control, and a screenless design that makes the device less intrusive in everyday settings. That may sound like a small detail, but in real-world healthcare, convenience can be the difference between strong adoption and weak adoption.

The reason is simple: people are more likely to stick with a treatment if it fits into their lives. A product that lowers mental burden, improves consistency, and gives patients more confidence can become a much more valuable tool than a device that simply delivers insulin. This is where MiniMed’s strategy may pay off. By combining software and hardware in a more seamless package, it has the chance to build a more compelling ecosystem around diabetes management.

A Huge Market Still Has Room to Grow

The investment case becomes even more appealing when viewed against the size of the market. Diabetes care is not a niche opportunity. It is a global healthcare category with long-term demand and strong recurring need. That matters because investors often search for companies that can grow steadily over time rather than rely on one-off bursts of demand.

Market estimates vary depending on how broadly the category is defined, but the direction is consistent. Industry research points to strong growth in the insulin pump market over the next decade, with some forecasts showing multi-billion-dollar expansion and double-digit annual growth rates. That kind of growth rate is especially meaningful in healthcare, where durable demand and product adoption can create long runways for the companies that execute well.

What makes the opportunity especially attractive is that advanced diabetes technology remains underpenetrated relative to its potential. Many patients still rely on older methods or have not yet adopted integrated pump-and-monitor solutions. As awareness grows and clinical confidence improves, the transition toward more automated treatment systems could accelerate.

MiniMed sits directly in the middle of that transition.

Why Goldman’s Bullish View Matters

When Goldman Sachs initiates coverage with a Buy rating, investors usually pay attention. That does not mean the firm is always right, but it does mean the company has been through a serious institutional review process. In MiniMed’s case, Goldman set a $24 price target, which suggests substantial upside from the levels referenced in the coverage.

That target reflects more than simple enthusiasm for a medical device company. It implies the bank sees a combination of product momentum, market expansion, and operating leverage that may not be fully reflected in the current share price. One of the more notable points in the coverage is the expectation that the company can continue generating high-single-digit sales growth while also expanding EBITDA margins over time.

That is a powerful combination if it plays out. Revenue growth alone is helpful, but when margin expansion is added on top, earnings can accelerate faster than many investors expect. In other words, a company does not need explosive top-line growth to produce strong equity returns if the profitability profile is improving at the same time.

The Post-IPO Setup Creates Opportunity

MiniMed’s status as a newly public company may be one reason the market has not fully priced it in yet. Newly listed stocks often face a period of discovery where investors debate the valuation, the business model, and the durability of the growth story. That can create volatility, especially if early enthusiasm gives way to more measured analysis.

The interesting thing about MiniMed is that a pullback after an IPO does not automatically signal weakness. Sometimes it just means the stock has not settled into its long-term identity yet. If the business continues to execute, the market can gradually move from uncertainty to confidence. When that happens, the share price often responds not just to current results, but to what investors believe the business could become several years down the line.

That seems to be the logic behind Goldman’s view. The bank appears to believe the market may be too focused on short-term noise and not enough on the structural shift toward more advanced diabetes care.

What Could Go Wrong for MiniMed

A balanced analysis has to include the risks. MiniMed is operating in a highly competitive sector, and competition in diabetes technology is intense. Established players are not standing still, and the pace of innovation in CGM and insulin delivery remains fast. A company in this space must keep improving its products or risk losing attention to rivals.

Regulatory approval timelines are another consideration. Even when a company has a strong product, delays in approval or commercialization can slow growth. Healthcare devices also depend on reimbursement systems, and if insurance coverage or international pricing dynamics become less favorable, adoption can be affected.

Still, none of these risks erase the core thesis. They simply remind investors that this is a stock for those who understand healthcare execution risk and are comfortable with a longer horizon. The upside case is tied to product adoption, operating leverage, and market expansion, not to a quick speculative trade.

Smurfit Westrock: A Packaging Giant Built for Scale

Smurfit Westrock (NYSE:SW) offers a very different investment profile, but it is no less compelling. The company is the result of the merger between Smurfit Kappa and WestRock, creating one of the largest paper-based packaging companies in the world. That scale gives the company a major advantage in a business where logistics, efficiency, pricing, and supply-chain reach all matter.

Packaging is often dismissed because it does not sound exciting. But some of the most durable businesses in the market are not exciting at all. They are simply well positioned, operationally disciplined, and tied to essential demand. Packaging fits that description well, especially when demand is being reinforced by e-commerce, sustainability preferences, and global shipping needs.

Smurfit Westrock’s reach across North America, Europe, and Latin America adds further strength. Geographic diversification can reduce dependence on one market and provide more flexibility when demand conditions differ across regions. It also helps support customer relationships with large multinational clients that need packaging solutions across multiple geographies.

Why Packaging Is More Relevant Than It Looks

The last decade has changed packaging economics in ways many investors may still underestimate. E-commerce has transformed box demand from a background industrial trend into a more visible growth driver. Every package shipped to a consumer represents demand for corrugated materials, and that demand compounds as online shopping becomes more deeply embedded in everyday retail behavior.

There is also the sustainability angle. As governments, retailers, and consumers place more emphasis on recyclable materials and reduced plastic use, paper-based packaging has become more attractive. That does not mean every packaging company benefits equally, but it does mean strong paper-focused operators have an opportunity to gain share and reinforce pricing power.

In this environment, scale matters. Large packaging providers can better manage input costs, negotiate with customers, invest in automation, and absorb volatility. Smaller competitors may struggle more when raw material or energy prices shift, while larger companies can use their size to smooth the impact.

The Merger Story Still Has Room to Play Out

One of the most interesting parts of the Smurfit Westrock story is that the market is still digesting the merger itself. Transformational deals often take time to show their full value. Investors usually want proof that synergies are real, that operations have been integrated efficiently, and that the new business can perform better as a combined entity than the two companies did separately.

Recent updates suggest that the integration process has been progressing well. The company reportedly exceeded its synergy target and continues to work through cost savings, operational improvements, and margin enhancement initiatives. That is exactly what long-term shareholders want to see in a post-merger industrial story.

If those savings continue to flow through the income statement, the company could become more efficient than the market currently assumes. In industrial businesses, even small improvements in operating margin can have a significant effect on earnings and free cash flow. That can lead to a stock rerating if the market comes to believe the company’s improved earnings power is sustainable.

A Dividend That Adds Support

Smurfit Westrock is especially interesting for investors who appreciate income. The stock offers a dividend yield around 4.39%, which provides a cash-return element that many growth-oriented stocks do not offer. That yield can make the stock appealing even in periods when the share price moves more slowly.

Income matters because it changes the investment equation. A stock does not need to be a fast double to justify ownership if it is also returning capital to shareholders in the form of dividends. In a more uncertain market environment, that can be especially valuable.

The dividend also suggests confidence in the underlying cash-generating ability of the business. While no dividend is guaranteed forever, a well-covered payout can be a sign that management believes the company has stable enough earnings and cash flow to support shareholder returns while continuing to invest in the business.

Goldman’s Price Target Leaves Room for Upside

Goldman Sachs’ Buy rating on Smurfit Westrock comes with a $49 target price, implying additional room above the share levels cited in the coverage. The bank’s view appears to be that the market is still undervaluing the company’s scale, earnings potential, and margin improvement potential after the merger.

That kind of thesis is common in industrial investing. A company may not need a dramatic change in market conditions to outperform; it may simply need to execute better than expected. If the market initially prices the business conservatively because of integration risk or cyclical uncertainty, then steady execution can lead to gradual revaluation.

Smurfit Westrock has the ingredients for that kind of story. It has scale, a broad footprint, exposure to a growing category, and a business model that supports both dividends and efficiency gains. If management continues delivering on those fronts, the stock could attract more attention over time.

The Main Risks for Smurfit Westrock

Like any industrial stock, Smurfit Westrock is exposed to cyclical pressures. Demand for packaging can weaken if consumer spending slows or if industrial activity softens. Input costs such as energy, pulp, and transportation can also squeeze margins when they move in the wrong direction.

There is also the reality that merger integration takes time. Combining large businesses is never effortless, and there are always risks related to culture, logistics, systems, and customer retention. If integration were to fall short of expectations, the market could become less willing to reward the company with a higher valuation.

Even so, the company’s position is solid enough to remain interesting. Its scale helps, its dividend supports the stock, and its exposure to packaging demand remains tied to broad structural trends rather than speculative themes.

Side-by-Side Comparison

This comparison shows why the two stocks are so useful together as a market idea. They are not similar businesses, but they both offer investors a way to participate in durable trends without relying on the most crowded names in the market. MiniMed is more of a growth-and-innovation story, while Smurfit Westrock is a scale-and-income story.

Why These Stories Matter in 2026

The broader lesson here is that high-quality investment ideas do not always come from the most visible parts of the market. Some of the best opportunities emerge in areas where the business case is strong but the narrative is still developing. That is exactly where Goldman Sachs seems to think these two names are now.

MiniMed is trying to build a more intelligent, more patient-friendly way to manage diabetes. Smurfit Westrock is trying to turn scale and merger synergies into a stronger global packaging platform. One is a healthcare technology story, and the other is an industrial consolidation story, but both have the same essential feature: a credible path to improving value over time.

That matters because the market tends to reward businesses that can grow through cycles, not just those that shine in one quarter. Companies with a long runway, a clear operational strategy, and a defined product or market advantage often become the ones investors wish they had recognized earlier.

What to Watch Going Forward

For MiniMed, the key questions are adoption, product traction, and profitability. Investors should watch whether MiniMed Flex gains meaningful commercial momentum, whether sales growth remains consistent, and whether the company can continue expanding margins as operations scale.

For Smurfit Westrock, the main focus should be on synergy delivery, cash flow, pricing power, and the sustainability of its dividend. If the company can continue improving efficiency while keeping demand stable, the stock could earn a higher valuation multiple over time.

In both cases, the story is not about sudden miracles. It is about steady execution inside large and growing markets. That is often where the most durable stock returns come from.

Final Thoughts

Goldman Sachs’ recent bullish stance on MiniMed Group and Smurfit Westrock is a reminder that opportunity often exists outside the loudest areas of the market. MiniMed offers exposure to a potentially transformative shift in diabetes care, while Smurfit Westrock provides a combination of industrial scale, dividend income, and merger-driven efficiency.

The two stocks serve different purposes, but both are anchored in real long-term trends. One benefits from healthcare innovation and chronic disease management demand, while the other benefits from packaging necessity, sustainability trends, and global logistics growth. For investors willing to look beyond the obvious, that makes them worth serious attention.

FAQ: Goldman Sachs Two Stock Pick