Goldman's 48 potential M&A candidates

Goldman Sachs predicts a 15% increase in M&A deal activity for 2026, driven by a strengthening U.S. economy, improved CEO confidence, and a bullish stock market.

The U.S. M&A Candidates portfolio has outperformed the S&P 1500 by 7 percentage points since September, indicating favorable outcomes for investors.

The article lists 48 companies ranked by their likelihood of M&A activity, with ranks indicating a 30%-50% chance for Rank 1 companies and a 15%-30% chance for Rank 2 companies.

Recommendation Rating: Strong Potential for M&A Growth

Goldman Sachs forecasts a 15% increase in deal activity for 2026, as per analyst David Kostin's insights. He attributes this expected growth in mergers and acquisitions (M&A) to several key factors: a strengthening U.S. economy, heightened CEO confidence, and a bullish equity market.

Investors could see favorable outcomes for stocks within Goldman's U.S. M&A Candidates portfolio. Notably, this basket has outperformed the equal-weighted S&P 1500 by 7 percentage points since the beginning of September.

Below is the list of 48 stocks featured in this M&A Candidates basket, categorized by their respective M&A rank. A rank of 1 indicates a 30% to 50% likelihood of M&A activity occurring within the next year, while a rank of 2 signifies a 15% to 30% probability.

M&A Candidates: Company Overview

Insmed Incorporated (NASDAQ:INSM) - Rank 1

Madrigal Pharmaceuticals (NASDAQ:MDGL) - Rank 1

Krystal Biotech (NASDAQ:KRYS) - Rank 1

Mineralys Therapeutics (NASDAQ:MLYS) - Rank 1

TripAdvisor (NASDAQ:TRIP) - Rank 1

Vera Therapeutics (NASDAQ:VERA) - Rank 1

Electronic Arts Inc. (NASDAQ:EA) - Rank 2

Zoom Communications (NASDAQ:ZM) - Rank 2

Unity Software (NYSE:U) - Rank 2

10.

Summit Therapeutics Inc (NASDAQ:SMMT) - Rank 2

11.

Albertsons Companies (NYSE:ACI) - Rank 2

12.

Parsons Corporation (NYSE:PSN) - Rank 2

13.

Molson Coors Beverage Company (NYSE:TAP) - Rank 2

14.

iRhythm Technologies (NASDAQ:IRTC) - NA

15.

Merus N.V. (NASDAQ:MRUS) - Rank 2

16.

Hexcel Corporation (NYSE:HXL) - Rank 2

17.

Magnolia Oil & Gas Corp. (NYSE:MGY) - Rank 2

18.

Workiva Inc. (NYSE:WK) - Rank 2

19.

Science Applications International Corp. (NASDAQ:SAIC) - Rank 2

20.

Arrowhead Pharmaceuticals (NASDAQ:ARWR) - Rank 2

21.

Option Care Health Inc. (NASDAQ:OPCH) - Rank 2

22.

MoonLake Immunotherapeutics (NASDAQ:MLTX) - Rank 2

23.

Braze (NASDAQ:BRZE) - NA

24.

Lantheus Holdings Inc (NASDAQ:LNTH) - Rank 2

25.

BlackLine (NASDAQ:BL) - Rank 2

26.

nCino Inc (NASDAQ:NCNO) - Rank 2

27.

AvePoint (NASDAQ:AVPT) - Rank 2

28.

Privia Health Group (NASDAQ:PRVA) - Rank 2

29.

Xenon Pharmaceuticals Inc. (NASDAQ:XENE) - Rank 2

30.

Kinetik Holdings Inc. (NYSE:KNTK) - Rank 2

31.

RingCentral (NYSE:RNG) - Rank 2

32.

Denali Therapeutics Inc. (NASDAQ:DNLI) - Rank 2

33.

Kosmos Energy Ltd. (NYSE:KOS) - Rank 2

34.

Sprout Social (NASDAQ:SPT) - Rank 2

35.

Relay Therapeutics (NASDAQ:RLAY) - Rank 2

36.

Olema Pharmaceuticals (NASDAQ:OLMA) - Rank 2

37.

Commerce.com (NASDAQ:CMRC) - Rank 2

38.

Kaltura (NASDAQ:KLTR) - Rank 2

39.

Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) - NA

40.

Take-Two Interactive Software (NASDAQ:TTWO) - NA

41.

Trimble Inc. (NASDAQ:TRMB) - NA

42.

Kratos Defense & Security Solutions (NASDAQ:KTOS) - NA

43.

89bio Inc (NASDAQ:ETNB) - NA

44.

Groupon (NASDAQ:GRPN) - NA

45.

Iovance Biotherapeutics Inc (NASDAQ:IOVA) - NA

46.

Day One Biopharmaceuticals (NASDAQ:DAWN) - NA

47.

Maravai Lifesciences Holdings (NASDAQ:MRVI) - NA

48.

Manitowoc Company (NYSE:MTW) - NA

This analysis underscores a significant opportunity within the M&A landscape, making these companies noteworthy candidates for potential growth in the upcoming year.