Goldman Sachs Still One of the Strongest in Its Industry

Goldman Sachs (GS) is one of the few companies with increased profit estimates in the marketplace today. Over the past 90 days their current quarter profit estimates have increased from $1.92 a share to $2.44 a share, a 27% increase. Likewise the next quarter estimates and the year profit estimates have also moved higher with the analysts that cover the stock.

Revenue and Earnings

Sales remain flat until next year when the company is projected to see an increase of 9% and earnings are still quite a bit lower this quarter compared to a year ago. But next quarter's earnings are now projected to be 19% higher than the previous year's same quarter. The forward price/earnings ratio is 11.44 for the stock which leaves room for appreciation in the price of the stock when earnings do materialize.

Stock Action

The company remains one of the strongest financials in an industry that has seen two of the major four Investment Banks be acquired for nothing (MER) or go bankrupt (LEH) over the past year. The stock has moved the past 2 1/2 months from a low of $73.95 to a high of $143.15 a share just last Monday. The Monday high represented a new break-out from a prior range which happened days before the market itself looked to make a similar break-out.

Goldman Sachs Group

Comments

[Stimpy:]

Goldman is no longer a Company that can be researched or recommended in any traditional sense.

There are clearly ties to the Government that are not understood or well articulated.

While it is tempting to believe this makes Goldman even more attractive, the reverse is probably just as true--what you don't know can REALLY hurt you when the pitchforks come out and the towns-people are at the gates wanting answers.

This aside, there aplenty of reasons to question the earnings power of this Company given the sea-change in financial-land, not the least of which is genuine concern about anti-trust issues down the road.

If you like the conditions that would take Goldman higher (and it is already expensive), Morgan or others would be cheaper, and mpre importantly, SAFER ways to play it.

May 26 12:56 PM

[Buckoux:]

I agree. GS may have some laundry that, when aired (in court or otherwise) may be very dirty. Can you say Bear Sterns or Leahman Bros. children?


On May 26 12:56 PM Stimpy wrote:

> Goldman is no longer a Company that can be researched or recommended
> in any traditional sense.
>
> There are clearly ties to the Government that are not understood
> or well articulated.
>
> While it is tempting to believe this makes Goldman even more attractive,
> the reverse is probably just as true--what you don't know can REALLY
> hurt you when the pitchforks come out and the towns-people are at
> the gates wanting answers.
>
> This aside, there aplenty of reasons to question the earnings power
> of this Company given the sea-change in financial-land, not the least
> of which is genuine concern about anti-trust issues down the road.
>
>
> If you like the conditions that would take Goldman higher (and it
> is already expensive), Morgan or others would be cheaper, and mpre
> importantly, SAFER ways to play it.

May 26 02:32 PM

[tom shane:]

Overwhelming percentage of bloggers hate GS and believe in some sort of conspiracy theory. That's why the technicals of this stock is SO strong. Outsiders are shorting, best research analysts and "insider" investors are buying .....hmm.......

May 26 06:48 PM

[Stimpy:]

Would you count Stephan Friedman as an "insider," Tom?
"Some sort of conspiracy theory" indeed.

May 27 09:43 AM

[DmytrenkoArtem:]

GS doing good, all financial doing good.. Can use it as an indicator of financials health

May 31 05:32 PM