Goldman Sachs Includes Tyson, CVS on Defensive Stock Screen

Goldman Sachs placed Tyson Foods and CVS Health on a defensive stock screen as it weighs whether slower artificial intelligence spending could weaken a major source of S&P 500 earnings growth.

The bank estimates AI capital spending accounts for about half of the index’s earnings growth. It expects that contribution to diminish as spending growth slows, while higher financing costs have raised concerns about the AI infrastructure buildout.

Goldman’s Cyclicals vs. Defensives pair fell 6% over two weeks. Interest rates and the rising cost of capital have added pressure to growth expectations, bringing shares in health care and consumer staples into focus for investors concerned about a weaker outcome.

Tyson had the highest trailing four-quarter free cash flow yield on Goldman’s screen, at 11%. Its shares had declined nearly 17% over six months, and its dividend yield was 3.72%.

CVS had a 9% free cash flow yield and a 2.88% dividend yield. Its shares had gained 15% for the year but fallen 15% over the preceding three months. Those figures describe the periods covered by the screen, rather than current trading levels.

The defensive screen does not change Goldman’s base case of continued earnings growth. The bank expects lower energy prices and interest rates in 2027 to support household spending. Consumer-facing stocks that have lagged the broader market could also catch up, though Goldman presents that rebound as a possibility.