The stock market has staged a robust recovery from April's sharp decline and reached new record highs. Year-to-date, the S&P 500 has gained 11% while the Nasdaq has surged 13.5%, reflecting sustained market optimism. Against this backdrop, Goldman Sachs Chief US Equity Strategist David Kostin has assessed the current situation and provided forecasts for the coming months.

Kostin stated: "As the economy navigates through the most severe period of tariff impacts, we expect the Federal Reserve's anticipated rate cuts and economic growth acceleration in 2026 to support further gains in US equities." He added: "Our economists predict the Fed will cut rates three times this year. Additionally, they expect the US economy to avoid recession and re-accelerate to trend growth levels in 2026. Historically, during Fed rate-cutting cycles where economic growth continues and recession is avoided, the S&P 500 typically generates positive returns... We expect the S&P 500 to rise 2% by year-end and 6% by mid-2026."

Beyond this macro outlook, Goldman Sachs analysts have been actively screening individual stocks they believe possess strong potential. Two stocks have received Goldman's "buy" rating with double-digit upside potential.

**Braze, Inc. (BRZE.US)**

First, focusing on the software technology sector, Braze, Inc. provides enterprise clients with a customer engagement platform optimized for multi-channel marketing. Its cloud-based platform prioritizes conversations over sales, offering target audiences a clear pathway from information acquisition to comfortable purchasing.

Braze's platform is data-driven and AI-powered, integrating information from diverse sources. Enterprise clients utilize the platform to engage with their users, transforming sales funnels into information journeys that facilitate sales through cross-channel messaging based on real-time data analysis. Braze's approach helps establish positive long-term connections between marketers and customers.

The company employs AI technology to maintain platform relevance in the rapidly evolving technology and marketing landscape. Braze's AI is designed to create relevant messaging, ultimately forming personalized content and recommendations for optimal results. From marketers' perspective, AI automates most processes for faster customer response; from customers' perspective, AI-driven marketing provides more relevant sales funnels to maintain engagement.

The software company's platform serves enterprises of all sizes, with Braze's clients including notable brands such as Chime, Canva, and TurboTax. Currently, Braze serves approximately 2,422 enterprise customers, with the platform reaching 7.4 billion active users daily. Last year, the platform processed over 3.9 trillion messages and other operations.

Quality products and effective technology have brought financial success to Braze. In the second quarter of fiscal 2026 ending July 31, Braze reported revenue of $180.1 million, up 24% year-over-year and nearly $8.5 million above expectations. Non-GAAP earnings per share reached 15 cents, exceeding expectations by 12 cents.

Goldman Sachs analyst Gabriela Borges highlighted multiple reasons why this presents a good buying opportunity: "We continue to position Braze as a preferred stock and see scenarios for accelerated market share growth in 2025: a) customers showing greater willingness to upgrade their marketing technology stack after a three-year digestion period; b) mechanical stabilization of net revenue retention (NRR) as Braze works through the least healthy renewal cohorts; c) targeted improvements in sales and marketing (S&M) reducing adoption barriers and enhancing engagement."

These views support the "buy" rating, with a $52 target price implying 73% upside potential over the next year.

**Carlsmed, Inc. (CARL.US)**

Medical technology company Carlsmed, Inc. is a commercial-stage company focused on AI-personalized spine surgery, committed to reducing surgical costs while improving patient medical outcomes. The company currently focuses on spinal fusion surgery, with its aprevo platform supporting AI-driven surgical planning through precise visualization to improve alignment and optimize fit for each patient.

This is crucial because surgical outcomes across all medical fields improve with more personalized procedures and care. Carlsmed's aprevo platform achieves this goal by leveraging patient data and advanced digital technology. Importantly, the platform is flexible enough to support a wide range of spinal surgeries, including various surgical techniques and precise solutions for anterior, posterior, and lateral spinal surgical approaches.

This medical technology company recently went public. On July 22, Carlsmed announced IPO pricing, issuing 6.7 million shares at $15 per share. The new stock ticker CARL began trading on July 23, with the IPO concluding on the 24th. The company raised approximately $100.5 million in gross proceeds from the initial offering.

Following the IPO, Carlsmed released its first quarterly financial report as a public entity at the end of August. Second quarter fiscal 2025 revenue reached $12.1 million, representing substantial 99% growth compared to the same period last year. The company provided full-year revenue guidance between $45.5 million and $47.5 million.

Goldman Sachs analyst David Roman is optimistic about the company's high potential for sales expansion: "Carlsmed's key growth drivers include anticipated sales team and broader commercial expansion (we forecast 29% S&M spending growth from 2025-2028), cervical indication launch in 2026 (expanding the surgical pool by 85%), and continued data publication supporting the platform's clinical differentiation. Our projected potential upside includes: increased surgeon adoption rates as products and clinical data gain attention within the medical community; increased utilization per surgeon as the company prepares to commercialize cervical indications applicable to the same physician group."

Roman concluded: "Considering the company's differentiated technology position, Goldman's expected revenue growth trajectory, mid-small cap medical technology company valuation comparisons, and the asset-light business model's accelerated path to profitability, we believe there is significant upside potential at current valuations."

This outlook supports a "buy" rating for Carlsmed stock, with a one-year target price of $19 implying 40% gains.