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Headquartered in New York City, The Goldman Sachs Group, Inc. (GS) is a leading global investment banking, securities, and investment management firm. With a market cap of $156.56 billion, it is known for its expertise in financial services and offers a wide range of solutions, including asset management, mergers and acquisitions advisory, and securities underwriting.
Shares of GS have significantly outperformed the broader market over the past year. The stock has gained 44.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 21.7%. In 2024 alone, the stock is up 27.5%, while the SPX has gained 13.9% on a YTD basis.
Narrowing the focus, Goldman Sachs' outperformance looks less pronounced when measured against the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). The exchange-traded fund has gained 27% over this period. Also, the stock's YTD gains are ahead of the exchange-traded fund's 12% returns over the same time frame.
In its Q2 results, reported on Jul. 15, Goldman Sachs’ profit more than doubled, surpassing analysts' expectations with earnings of $3.04 billion, or $8.62 per share. This strong performance was fueled by robust debt underwriting and a 17% increase in fixed-income trading revenue, particularly in FICC financing, which surged 37%. The stock gained 2.6% after the company reported its earnings.
For the current fiscal year, ending in December, analysts expect GS’ EPS to grow 55.2% to $35.49 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering GS stock, the consensus rating is a “Moderate Buy,” slightly less bullish than “Strong Buy” three months ago. That’s based on 15 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
On Aug. 5, Barclays analyst Jason Goldberg maintained a “Buy” rating on Goldman Sachs with a price target of $565, implying a potential upside of 14.9% from current levels.
The mean price target of $503 represents a 2.2% premium to GS’ current price levels. The Street-high price target of $571 suggests an upside potential of 16.1%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
