Opinions
Josh Brown, CEO, Ritholtz Wealth Management
Goldman Sachs
GS-N
TRADE
Sep 11, 2024
Stock price when the opinion was issued
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At 13X earnings, considering earnings, capital markets outlook and interest rate forecasts, we think it still looks good.
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Likes it. Financials should be one of the leaders coming out of the current environment, as they were before the recent volatility. Down ~22% from recent highs last month on recession concerns. 200-day MA seems to be support where you can buy. As Buffett says, "Be greedy when others are fearful."
One of the leaders in investment banking and wealth management. Will benefit from deregulation and potential increase of M&A activity.
Of the big banks, they are the most levered to investment banking, including IPOs. He bought it expecting an uptick in IPOs under Trump, but his tariffs have temporarily derailed that. The IPO revival should happen if tariffs don't return. This pulled back hard since mid-February because of those tariffs, down 35%.
Is perfectly positioned for the tailwinds under the Trump presidency. After April's tariffs, corporate boards have been sitting and waiting, reluctant to do deals, but a strong capital market will eventually happen. Pays a good dividend and are very well-capitalized.
(Analysts’ price target is $596.61)
As long as the CEO continues to execute, the stock will be fine. However, before he was dismayed to watch GS get into ill-fated consumer finance, so it's important they are mostly exiting these businesses and returning to what they DO best: IPOs, capital markets and trading. Technically, it's not good: an RSI of 36 and is partially oversold. It broke the rising 50-day moving average last week. There should be support around $426-430 and would look at it then as a trade but not an investment.