Tactical investors put their capital where they think their money will grow the most in normal and good times. Or they will put their capital where they believe will offer the most protection in patches of weakness. Sometimes for days, sometimes for months — or even longer. Companies like McDonald’s and Walmart have historically offered some defense for harder times, but they also grow more when the economy is expanding.

Goldman Sachs has now just added both Dow Jones Industrial Average stocks to its prized U.S. Conviction List. The list is its best group of analyst ratings for upside in the 12-month period ahead.

Tactical Bulls always reminds its readers that no single analyst report should ever be the sole reason to buy or sell a stock. Analysts can sometimes get their outlooks wrong. And sometimes market fundamentals can change in an instant.

It turns out that there were four stocks added in the September update to Goldman Sachs’ US Conviction List.

McDonald’s Corporation (NYSE: MCD) was rated as Buy with a $355 price target, but Goldman Sachs added it to the prized list in September as McDonald’s has the scale, marketing, and digital expertise to overcome the current environment that of uncertain consumers. McDonald’s shares were up 1.4% at $315.75 on Tuesday afternoon.

Walmart Inc. (NYSE: WMT) is rated as Buy with a $114 price target, but Goldman Sachs used the September update to add the world’s largest retailer to the Conviction List as the company is well positioned for market share gains as consumers face higher merchandise prices under the new tariffs. Shares of Walmart were up 0.9% at $98.00 on Tuesday afternoon.

Cadence Design Systems, Inc. (NASDAQ: CDNS) was already rated as Buy with a $400 price target, but Goldman Sachs added it to the US Conviction List in its September monthly update. The new advantage is compounding growth as non-traditional customers are looking for new and custom chip designs. The stock was down over 2% at $343.00 on Tuesday afternoon.

Valero Energy Corporation (NYSE: VLO) is rated as Buy with a $162 price target at Goldman Sachs, but the firm added it to the prized US Conviction List coming from a refining structural upcycle that will benefit Valero more than most peers. Its shares were up 1.5% at $154.30 on Tuesday afternoon.

All opinions and targets voiced above are consolidated views from Goldman Sachs. Tactical Bulls has no formal ratings and no formal price targets of its own on any of the companies mentioned above.