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Valued at a market cap of $187.3 billion, New York-based The Goldman Sachs Group, Inc. (GS) is a leading global financial institution offering a wide range of services in investment banking, securities, investment management, and consumer banking. It operates through four primary segments: Investment Banking; Global Markets; Consumer & Wealth Management; and Asset Management.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Goldman Sachs fits this criterion perfectly, exceeding the mark. Goldman Sachs is the second-largest investment bank in the world by revenue and operating private-equity funds, hedge funds, and its own bank, Goldman Sachs Bank USA.
Despite a 2.1% dip from its 52-week high of $612.73 achieved on Nov. 29, the investment bank has rebounded with a 25% increase over the past three months, outperforming The iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI), which gained 21.4% during the same period.
Longer term, Goldman Sachs’ shares have soared 55.4% on a YTD basis, outpacing IAI's 40.5% gain. Also, GS' shares have gained 75.3% over the past 52 weeks, compared to IAI's 52% return over the same time frame.
GS has been trading above its 50-day and 200-day moving averages since last year, indicating a bullish price trend.
Goldman Sachs reported Q3 2024 adjusted EPS of $8.40, surpassing the consensus estimate, driven by strong growth in its investment banking business and a solid performance in its Asset & Wealth Management division. Net revenues for the quarter increased 7.5% year-over-year to $12.7 billion, surpassing estimates, while operating expenses fell 8.2% due to lower compensation and benefits costs. However, the stock fell marginally on Oct. 15 as investors expressed concerns over the rise in provisions for credit losses and the slight decline in the company's capital ratios.
Nevertheless, in comparison with its rival, Morgan Stanley (MS) has underperformed Goldman Sachs, with shares of MS gaining nearly 64% over the past 52 weeks and 39.6% on a YTD basis.
Despite GS’ outperformance over the past year, analysts are cautiously optimistic, with a consensus rating of "Moderate Buy" from 22 analysts. As of writing, GS stock is trading above the mean price target of $592.60.
