John O'Connell, CFAGoldman SachsGSPAST TOP PICKSep 18, 2018

Analysts when they made their estimates didn't count on GS winning the SpaceX and openAI IPOs.

A dividend pick. Dividend are one of the best, easiest ways to hedge against inflation. This is a dividend grower, increasing each year by nearly 22% annually over the past 5 years. The total return over 3 years is 248%.

The IPO market is about to explode, benefiting GS, which hit $1,000 a share today. Also, trading and investment banking are also doing quite well. Wealth management is a kicker. Also, the big banks continue to buy back shares.

They will be the big winner in IPOs coming down the line.

His largest holding. They just reported a good quarter. Management is superb. The best way to play the investment banking cycle. 

He owns a large position. They report Monday. Unless something happens in the Middle East to spike the price of oil, he expects good numbers from GS. They manage risk well and this is a troubled market.

They will benefit from M&A, and Washington is pro-merger.

Likes US large banks -- will continue to benefit from deregulation and a sturdy economy. Citi is the most technically sound of the group.

He sold due to concerns in private credit. GS has exposure to asset management, debt underwriting, and lending. Is up 35% the past year. Doesn't want exposure if the bad news continues. Is a cautious move to add more cash.

Likes a lot of the large US banks. He owns JPM and GS.

Among the leaders in the M&A world. Under the Trump administration, M&A activity is way up due to less regulation. Impeccably well positioned to keep driving forward.

Core holding. Buying today for new clients. For his firm, have to see 10% annualized return over 5 years to justify holding or buying a stock. And this name fits. Stock's not as cheap as 5 years ago, so growth will be slower going forward.

One of the most senior US banks, a leader. Is more of an investment bank. 2025 was a great year for banks, give the IPO business and takeovers. 2026 should be as good or better with this activity. They report Thursday. A lot of runway ahead.

It reports Thursday. It should report excellent numbers, because activity in financial markets is unusually strong. GS's takeover business should be tremendous.

Banks stock PEs remains very cheap. GS at 17x PE. Is a huge player in M&A and IPOs.

GS is up 61% this year, and JPM 40%, better than the Mag 7. We're already seeing a broadening of the rally into financials and he expects 2026 to be a much better year for them. M&A plays perfectly into these names, and they don't trade at high PEs. Is very bullish these banks.