Sells at only 8x earnings and he expects earnings to be very good this year. Stick with this and hold it for a long time. It's well-run. Also likes Morgan Stanley.
(A Top Pick Jan 28/21, Up 44.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GS is progressing well. We now recommend trailing up the stop (from $320) to $360. If triggered this would all but guarantee a investment return over 23%, when including the previous recommendation to cover half.
Their headline numbers were jaw-dropping last week, earning $15/share and beating the expected $10. Much of that came from gains in equity investments. Nearly every business of their beats, even fixed income and currency trading. Profit and revenue beat last week. Their investment banking division has its best quarter in the previous quarter, and its second-best in the most recent quarter. So it looks like GS peaked in the first three months this year, though he isn't convinced. It trades cheaply, trading under 7x earnings.
About to report earnings. Was down $4 this morning, then bounced $12. It was down because of negative market futures. An example of using futures to buy on dips.
(A Top Pick Feb 02/21, Up 18.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GS is progressing well. We are now recommending trailing up the stop (from $280) to $320. This would all but ensure a minimum investment return of 16%.
(A Top Pick Jan 28/21, Up 17.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with UAL has achieved its $327 objective. To be disciplined, we recommend covering 50% of the position and trailing up the stop to $280 (just above our initial recommended entry level). This would all but guarantee a minimum investment return exceeding 9%.
Stockchase Research Editor: Michael O'ReillyGS is a world leader in investment banking and wealth management services. It has global diversification and is ideally situated for an evitable rebound in IPO and M&A activity. Recent earnings showed a 22% increase in revenues over the year and EPS that beat analyst expectations. It trades at 12x earnings, compared to 21x for its peers. It pays a decent yield, backed by a payout ratio of under 40% of cashflow. We would buy this with a stop-loss at $225, looking to achieve $327 -- over 16% upside. Yield 1.83% (Analysts’ price target is $327.06)
Ran into trouble with ROE being subpar and some scandals. They are now back in business and are well positioned. It has one of the best investment banking business, and growing their wealth management business. Trading at 10x earnings when it should be trading around 15x earnings. A cheap play and one of his favourite financials. (Analysts’ price target is $329.58)
Has been a juggernaut, but it needs to massively beat the street, not meet its expectations. A normal beat is not enough. Also need to offer sunny guidance. They report Tuesday.
(A Top Pick Dec 18/19, Up 13%) It's lagged like the other US banks, but is enjoying a pop now that they are allowed to buyback shares. The runway here is long.
They could have a good report next week in their report. It's not a good time for regular banks, but it's better for investment ones.The stock is cheap and fundamentally solid, but each time he's recommended it, the stock pulls back.
US banks are cheap, as they've done nothing for years. You have to own tomorrow's story. Plant seeds that will grow. Will do better in the next 10 years than in the last 10.
US financials? They own JPM as they have a well diversified business and strong balance sheet. GS is more a capital market sensitive company, which puts more pressure on them. She suggests having Canadian and US banks in your portfolio.
Goldman Sachs is a American stock, trading under the symbol GS (previously GS-N on Stockchase) on the New York Stock Exchange (GS). It is usually referred to as NYSE:GS or GS
Sells at only 8x earnings and he expects earnings to be very good this year. Stick with this and hold it for a long time. It's well-run. Also likes Morgan Stanley.