Tuesday's IBD 50 Stocks To Watch pick is Dow Jones banking giant Goldman Sachs, which is in a buy range above a recent entry. Goldman is one of the best stocks to buy and watch right now.
Last week, the global investment bank topped estimates, earning $8.62 per share. Earnings surged 180% vs. the year-ago period, while revenue grew 19% to $30.9 billion.
Trading revenue at Goldman totaled $6.35 billion, up 12%, helped by lending to institutional clients. Goldman has shifted into this type of lending, which offers more predictable revenue. The company also views this as a way to get a bigger share of clients' overall business and create a stickier relationship with them.
Meanwhile, a more stable outlook for interest rates is giving investment bankers renewed hope that deal-making is emerging from a two-year drought.
For its full year, Goldman earnings are expected to jump 61% to $36.80 per share, snapping a two-year streak of declining earnings, according to IBD MarketSurge. Goldman earnings are expected to rise another 13% in 2025.
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Dow Jones Leader In Buy Range
Among the best stocks in the Dow Jones 30, Goldman Sachs is in buy range above a 471.48 flat-base buy point, according to MarketSurge pattern recognition. Shares are about 4% above their entry point, up 1.7% at midday Tuesday. The buy zone tops out at 495.05, so shares are on the cusp of being overextended.
Bullishly, the relative strength line hit a new high in the wake of the stock's July 9 breakout. That confirms the Dow Jones stock as a market leader. The RS line compares a stock's price performance vs. the S&P 500.
As a result of strong price performance and big earnings growth in recent quarters, Goldman stock boasts a strong 97 out of a best-possible 99 IBD Composite Rating, according to IBD Stock Checkup.
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Other Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Carlisle Cos. | 430.21 | Flat base | |
| MercadoLibre | 1,792.05 | Cup with handle | |
| Palantir Technologies | 26.57 | Cup with handle |
Source: IBD Data As Of July 23
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
