Goldman Sachs: Defensive Allocation "Both Offense and Defense", Seven Major Sectors and Recommended Targets Help Deal with US Stock Market Volatility

n Corporation145132026EBITDAChevron Corporation115.25Chevron CorporationSES AI Corporation Class A Goldman Sachs Group, Inc.The target price for n Corporation is $183, which is based on a valuation of 8 times EV/DACF (Enterprise Value/Discounted Cash Flow). The current market price for Chevron Corporation is $152.95, indicating some room for growth. For investors, Chevron Corporation is not only defensive, but also has growth potential, making it a key investment target in the SES AI Corporation Class A giants and oil refining sector.Southern Company Goldman Sachs Group, Inc.Southern Company742025-2027Southern Company58.46Southern Company Overall, Goldman Sachs Group, Inc.Investors can consider these recommendations and adjust their portfolios accordingly to achieve their investment goals.Recommended targets in the business sector. The growth points of the American Southern Company are mainly focused on transmission investments in Georgia and pending power generation project bids. Georgia is an important economic region in the southeastern United States, with a continuous increase in electricity demand. The transmission investments of the American Southern Company in this region can not only meet the local economic development's demand for electricity but also bring stable income to the company. In addition, the pending power generation project bids are expected to provide an opportunity for profit improvement for the American Southern Company in 2027, further enhancing the company's profitability.man Sachs Group, Inc. 312EPS3% 12(EPS)3% Goldman Sachs Group, Inc.The mid-term expectations provided by Goldman Sachs Group, Inc. serve as a reference point for investors, and the actual market expectations are similar, indicating that the market has a certain consensus on the long-term trend of natural gas prices. This consensus is helpful for investors to have a relatively clear price expectation basis when evaluating E&P stocks in the gas sector, thereby more accurately judging whether the stock valuation is reasonable.Figure 2 3. Valuation of Utilities: Industry Price-to-Earnings Ratio premium significantly when the 10-year US Treasury yield is below 3% When the 10-year US Treasury yield is below 3%, the price-to-earnings ratio of the utilities industry will show a significant premium. This relationship reveals the close connection between the utility sector and interest rate environment. Utility companies typically have stable cash flows and higher dividend yields, making them more attractive in a low-interest rate environment. When the US Treasury yield is low, investors tend to seek assets that offer higher returns, and utility stocks, with their defensive and stable income characteristics, become one of the ideal choices. Therefore, the market will give utility stocks a higher price-to-earnings valuation, reflecting investors' preference for these assets in a low-interest rate environment. This valuation premium phenomenon provides investors with an important reference point for evaluating utility stocks in different interest rate environments, helping them identify investment opportunities and determine the right pricing levels. Figure 3 Summary and Outlook: Defensive strategy requires both offense and defense Goldman Sachs Group, Inc. recommends that in the context of energy transition and macroeconomic fluctuations, investors should prioritize targets that have stable cash flows, healthy balance sheets, and market leadership in specific segments, while also paying attention to opportunities for elasticity brought by mid-term supply-demand mismatches (such as rebounding oil prices). The seven major sectors mentioned above and the recommended stocks provide multi-level defensive strategies for the current market.