One of the stocks that has really been taking it on the chin lately is Goldman Sachs (GS). Now might be the time to put it on your watch lists since the stock is so depressed, and there might be an opportunity to pick up a few shares on the cheap. Price momentum has currently been negative so let's look at the possibilities. When the market (notice I didn't say economy) recovers it is positioned to take advantage.
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Goldman Sachs is a global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments and high net worth individuals.
Factors to consider
Barchart Technical Indicators
- 96% Barchart technical sell signals
- Trend Spotter sell signal
- Below its 20, 50 and 100 day moving averages
- 23.04% off its recent high
- Relative Strength Index 31.33 and still falling
- Trades around 134.74 which is below its 50 day moving average of 148.94
- Short interests, believe it or not, is not excessive and has stayed at a steady one day's volume for some time
Fundamental Factors
- Most of the time Wall Street brokerage analysts don't like to give opinions on the investment qualities of other brokerages but analysts have released seven strong buy, 10 buy and eight hold recommendations with no negative reports published.
- Sales are projected to increase by 7.60% this year and another 5.90% next year.
- Earnings are estimated to increase by 9.40% this year and a whooping 32.00% next year. The earnings are expected to increase by 11.33% annually for the next five years.
General Investor Sentiment
- On Motley Fool the 7,585 readers expressing an opinion are 89% positive.
- CAPS members vote 5,481 to 665 that the stock will beat the market.
- The experienced All Stars vote 1,288 to 151 in agreement.
Summary: Good investments are stocks that have long range projections for increases in sales and earnings and can be picked up at a discount. Investors, both professional and individual are high on the long range prospects of Goldman Sachs. The market has beaten down the stock almost 23.00% off its 52-week high. I'd follow it down a little longer and pick it up when it crosses its 20 day moving average.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
