The average rating on Goldman Sachs (GS +1.4%) of 3.21 (where a sell-side Buy gets a 5, a Hold gets a 3, and a Sell gets a 1), the lowest since Bloomberg started tracking the data in 2006. The 3.21 rating puts Goldman 68th among 83 financial stocks in the S&P 500. For the entire S&P 500, Goldman is ranked 440th.
This comes, of course, as the decline in trading revenue at investment banks picks up steam, with Goldman more reliant on this activity than its competitors. "What drives activity in our business is volatility.," said Goldman president Gary Cohn at an investor conference recently. "If markets never move or don’t move, our clients really don’t need to transact.”
Priced in? Goldman is down 4.9% YTD vs. Morgan Stanley's 3.8% gain and JPMorgan's 1.8% drop. On a year-over-year basis, Goldman is ahead just 2.7% vs. Morgan Stanley +24.1%, JPMorgan +6.6%, and the XLF +15%.
Previously: Green shoots at Goldman