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With a market cap of $194.2 billion, The Goldman Sachs Group, Inc. (GS) is a leading global financial institution providing investment banking, securities, investment management, and consumer banking services. It operates through key segments, including Global Banking & Markets, Asset & Wealth Management, and Platform Solutions, serving corporations, financial institutions, governments, and individuals worldwide.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Goldman Sachs fits this criterion perfectly. As the world’s second-largest investment bank by revenue, Goldman Sachs stands out for its systemically important role in global finance, expertise in investment banking, proprietary trading, complex financial structuring, and leadership in private equity, hedge funds, and fintech-driven banking services.
Despite a nearly 10% decline from its 52-week high of $672.19 reached on Feb. 18, shares of the investment bank have risen marginally over the past three months, outperforming the broader S&P 500 Index’s ($SPX) 3.3% decline over the same time frame.
In the longer term, GS stock is up 5.7% on a YTD basis, outpacing SPX’s marginal dip. Moreover, shares of Goldman Sachs have climbed nearly 56% over the past 52 weeks, compared to SPX’s 13.9% return over the same time frame.
GS has maintained a bullish trend, consistently trading above its 50-day and 200-day moving averages since last year.
Shares of Goldman Sachs surged over 6% on Jan. 15 after reporting Q4 EPS of $11.95 and net revenue of $13.9 billion, beating expectations. The Global Banking & Markets segment generated a record $34.9 billion in net revenue for 2024, up 16% year-over-year, with investment banking fees increasing by 24% and equities and financing activities hitting all-time highs. The firm's efficiency ratio improved to 63.1%, aided by a 2% reduction in operating expenses and a 39% drop in credit loss provisions to $351 million.
In addition, GS has outperformed its rival, Morgan Stanley (MS), which has experienced an increase of 49.3% over the past 52 weeks and a rise of 2.7% on a YTD basis.
Despite Goldman Sachs’ robust performance over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 22 analysts covering the stock, and as of writing, GS is trading below the mean price target of $661.25.
