Followers | 680 |
Posts | 141212 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Tuesday, December 28, 2021 9:11:55 AM
By: Zacks Investment Research | December 28, 2021
Goldman Sachs (GS) has solidified itself as the gold standard on Wall Street, navigating the choppy pandemic waters with a level of operational perfection that no other major financial institution could match. Following the recent valuation compression, GS is poised to take flight in 2022 and is one of my top picks going into the new year (with many other investment professionals in agreement).
Sell-side analysts are getting increasingly optimistic about the future of Goldman Sachs, pushing up their EPS estimates after a blowout Q3 report, propelling GS into a Zacks Rank #2 (Buy).
The Opportunity
Goldman seized on the opportunities that each stage of the devastating pandemic presented. GS drove record trading profits from the market capitulation of March 2020, attained excellent portfolio returns for its high wealth thereafter, and has been one of the biggest beneficiaries of the record IPO & M&A frenzy we've seen over the past 12 months or so (and this dealmaking euphoria is expected to spill into 2022).
This global investment leader has demonstrated its ability to effectively adapt to the continuously evolving financial conditions as we enter the digitally-fueled Roaring 20s.
Goldman's Q4 earnings release is on the top of the 2022 January docket, with its full year report expected to be released January 18th (before the opening bell). In the past 6 quarterly releases GS has knocked analysts' consensus EPS estimates out of the park by no less than 50% (averaging 66%) while exceeding revenue expectations by an average of roughly 30%.
Despite analysts ' seemingly perennial upward estimate revisions, I see no reason this outsized estimate beating trend wouldn't continue in 2022 as rising interest rates expand Goldman's already record margins even further.
Strong Fundamentals
Goldman Sachs is the captain of high finance and the banking sector's knight in shining armor. The firm is known for its quick opportunity seizing trading actions and best-in-class investment banking operations. A record volume of IPOs, bond offerings, and M&A activity have powered this business's top and bottom-line to incredible levels that have consistently blown analysts' estimates out of the water.
David Solomon has proven himself at the helm of this remarkable Wall Street titan, driving top and bottom-line results that have dwarfed any pre-pandemic figure. Since Solomon was named CEO and Chairman of Goldman Sachs on October 1st, 2018, GS shares are up over 60%. This may not sound like a lot, but GS has navigated the 2018 year-end sell-off and the most significant economic contraction since The Great Depression.
GS had a premier year with an over 60% 10-month year-to-date rally, which peaked at the beginning of November, but a recent correction from that high has presented us with an excellent entry point. The cushy 2.1% dividend yield that this stock offers its shareholders, should provide even the most risk-averse investors with the comfort to add this investment leader to their portfolio's financial holdings.
The dealmaking king is looking at a consensus price target north of $450 a share (some targets as high as $600), with analysts getting increasingly bullish on a seemingly weekly basis. 11 out of 16 analysts are calling GS a buy today with 0 selling ratings.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent GS News
- Meta Platforms Expands AI Ads, Apple Boosts iPhone Shipments, and More Highlights • IH Market News • 05/08/2024 12:27:48 PM
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- Perficient Stock Soars 52.9% Post-Acquisition; Luminar Declines 10% Amid Workforce Cutbacks, and Other News • IH Market News • 05/06/2024 12:09:00 PM
- Transcendia Announces Significant New Capital Investment to Support Next Phase of Growth and Value Creation Initiatives • PR Newswire (US) • 05/02/2024 04:00:00 PM
- Alphabet CEO’s Billion-Dollar Wealth, Microsoft’s $1.7B Indonesia Investment, and More News • IH Market News • 04/30/2024 11:58:40 AM
- BHP Bids $38.8 Billion for Anglo American; Biden Unveils Historic Micron Technology Deal, and More News • IH Market News • 04/25/2024 11:48:40 AM
- Paramount’s Shares Surge Following Sony and Apollo’s Joint Bid; ISS Backs Berkshire Hathaway Director Re-election, and More • IH Market News • 04/19/2024 11:31:22 AM
- Tether’s Division Restructure, Aptos-Microsoft DeFi Collaboration, and More Crypto News • IH Market News • 04/18/2024 05:59:13 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- Analysts Sound Alarm on Fourth BTC Halving, Kraken Wallet Launch, and More Crypto News • IH Market News • 04/17/2024 05:45:22 PM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Dow Looks To Snap Six-Day Losing Streak As UnitedHealth Surges • IH Market News • 04/16/2024 01:09:47 PM
- U.S. Index Futures Signal Mixed Trading, Oil Prices Dip • IH Market News • 04/16/2024 11:19:33 AM
- U.S. Stocks Extend Sell-Off As Treasury Yields Surge After Retail Sales Data • IH Market News • 04/15/2024 08:38:32 PM
- Goldman Sachs’ Q1 net revenue totals $14.21B • IH Market News • 04/15/2024 06:36:16 PM
- Upbeat Earnings, Retail Sales Data May Generate Buying Interest • IH Market News • 04/15/2024 01:10:16 PM
- U.S. Index Futures Surge after Dow Jones’ Worst Week, Oil Prices Dip • IH Market News • 04/15/2024 11:08:21 AM
- Paramount Global Board Shrinks, Morgan Stanley Faces Regulatory Probe, and More News • IH Market News • 04/12/2024 11:05:29 AM
- Costco Increases Dividend by 14%, Meta Introduces ‘Artemis’ AI Chip, and More News • IH Market News • 04/11/2024 11:24:54 AM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
- Crypto: Morgan Stanley and UBS Compete for Leadership in Bitcoin ETFs, Risks in Ethena’s USDe Strategy, and More • IH Market News • 04/05/2024 06:15:55 PM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Exxon Mobil Forecasts Earnings Decline, Twilio Seeks Board Tenure Changes, and More News • IH Market News • 04/04/2024 11:30:20 AM
- Crypto: Paradigm Seeks Investment for New Web3 Fund, KBW Initiates Cautious Coverage on Robinhood, and Other Updates • IH Market News • 04/03/2024 02:21:12 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM