Goldman says buy these stocks if coronavirus fears prove to be overblown

A pedestrian with an umbrella walks in front of the Wynn Palace casino resort, operated by Wynn Resorts Ltd., in Macau, China, Jan. 31, 2018.
Billy H.C. Kwok | Bloomberg | Getty Images

For investors who believe the impact of the coronavirus outbreak will be contained, Goldman Sachs said buy the dip in these value stocks.

Equities rebounded last week despite lingering fears about the deadly virus, with the S&P 500 pulling off its biggest weekly gain since June. If the concerns about the epidemic turn out to be overblown, stocks with solid dividend growth should outperform, according to David Kostin, Goldman's head U.S. equity strategy.

"Investors who believe the economic consequences of the coronavirus will be limited should increase exposure to cyclicals and value stocks," Kostin said in a note Friday.