European Conviction List - Directors' Cut

Latest edition · October 1, 2026

European Conviction List Directors' Cut October 2026 Update Three Years On

Marking three years since inception, Goldman Sachs updates its European Conviction List - Directors' Cut for October 2026, adding Solaria, Straumann, Scout24, and IMCD while removing Naturgy, Norsk Hydro, and Smith & Nephew. The active list of 26 differentiated fundamental Buy ideas offers a median 38% upside to 12-month price targets and has generated 155 bps of median outperformance vs the STOXX 600 LTD.

In the October 2026 edition of the European Conviction List - Directors' Cut, Goldman Sachs reflects on three years of stock picking performance, achieving a 155 bps median outperformance against the STOXX 600 across 98 unique stocks. For the monthly rebalance, Solaria, Straumann, Scout24, and IMCD were added to the list, while Naturgy, Norsk Hydro, and Smith & Nephew were removed. The 26 Buy-rated constituents feature a median 12-month total return potential of 39% (38% PT upside) and trade at a median 14.5x 12-month forward P/E. Key themes guiding positioning include rising bond yields, winter European gas market uncertainty, AI agent disruption debates, and narrow market breadth alongside resilient 2026 European corporate earnings growth (~15%).

Key takeaways from the latest edition

• 1.For the October 2026 update marking the list's three-year anniversary, Solaria, Straumann, Scout24, and IMCD are added to the Conviction List, while Naturgy, Norsk Hydro, and Smith & Nephew are removed.
• 2.Over the past 3 years (life-to-date), the Conviction List has featured 98 unique stocks across 29 analysts, delivering a median outperformance of 155 bps versus the STOXX 600 with an average holding period of 7.0 months.
• 3.Differentiated fundamental views on earnings remain the primary alpha engine: 62% of list names saw positive earnings revisions over the trailing 12 months, though performance was more volatile monthly due to AI disruption sentiment and rate shifts.

What this series covers

• October 2026 Update - Three Years On
• A look at performance and what we learned
• Our Process
• How we measure ourselves
• Some notes on performance and lessons learned
• Six themes we are watching
• Connecting the dots for September
• Our 26 Most Differentiated Buy Recommendations
• Anatomy of the List
• Upcoming Catalysts
• What has worked, what has not and what has changed?
• Solaria (SLRS.MC) - covered by Alberto Gandolfi
• Straumann (STMN.S) - covered by Richard Felton
• Scout24 (G24n.DE) - covered by Adam Berlin
• IMCD (IMCD.AS) - covered by Suhasini Varanasi
• Adyen NV (ADYEN.AS) - covered by Mohammed Moawalla
• Argenx SE (ARGX.BR) - covered by Rajan Sharma
• ASML Holding (ASML.AS) - covered by Alexander Duval
• BBVA (BBVA.MC) - covered by Sofie Peterzens
• BT Group (BT.L) - covered by Andrew Lee
• Ceres Power (CWR.L) - covered by Michele Della Vigna
• CTP N.V. (CTPNV.AS) - covered by Jonathan Kownator
• CVC Capital Partners (CVC.AS) - covered by Oliver Carruthers
• DSV A/S (DSV.CO) - covered by Patrick Creuset
• flatexDEGIRO SE (FTKn.DE) - covered by Oliver Carruthers
• Haleon (HLN.L) - covered by Olivier Nicolaï
• Halma Plc (HLMA.L) - covered by Christian Hinderaker
• HSBC (HSBA.L) - covered by Chris Hallam
• InterContinental Hotels Group (IHG.L) - covered by Ben Andrews
• Puig Brands S.A. (PUIGb.MC) - covered by Aron Adamski
• Rheinmetall (RHMG.DE) - covered by Sam Burgess
• RWE (RWEG.DE) - covered by Alberto Gandolfi
• Siemens Energy (ENR1n.DE) - covered by Ajay Patel
• Sika (SIKA.S) - covered by Ben Rada Martin
• Talanx (TLXGn.DE) - covered by Andrew Baker
• TGS ASA (TGS.OL) - covered by Michele Della Vigna
• Trelleborg AB (TRELb.ST) - covered by Ope Otaniyi
• Sector and Country Exposure
• GS IP Factor Exposures
• Underappreciated Growth
• Value with Earnings Upside
• Dividend Yield + Growth
• Self-Help Profitability Improvers
• FCF Growth/Inflections
• Conviction List Removals since inception

Edition archive

• European Conviction List Directors' Cut October 2026 Update Three Years On

  October 1, 2026

• European Conviction List Directors' Cut September 7, 2026 Update

  September 7, 2026

• European Conviction List - Directors' Cut August 2026 Update

  August 3, 2026