Goldman Sachs Q2 Earnings Preview: M&A Outlook Should Become More Clear

Vinay Utham, CFA
1.07K Followers

Summary

  • Goldman Sachs has strong momentum, consistently beating earnings estimates, and I expect another beat in Q2 despite marginal overvaluation.
  • Key areas to watch are management's commentary on the M&A outlook, stress test results, and the asset & wealth management division's performance.
  • GS is trading near all-time highs and is slightly overvalued, so I recommend only a small position ahead of earnings.
  • I maintain a BUY rating based on momentum and recent performance, but advise caution due to valuation and market positioning.

Businessmen shaking hands

Andy Andrews

Introduction

Goldman Sachs (NYSE: NYSE:GS) is scheduled to release its Q2 earnings on Wednesday, July 16 before the market opens. In this article, I explore the key factors that investors need to watch out for in the company’s Q2 report.

This article was written by

1.07K Followers
An independent investor in the Indian and US equity markets with a CFA Charter and a PhD in Finance from University of Durham, U.K. I hold an Honorary Associate Professor in Finance and Corporate Governance title at Brunel University London. I have a YouTube and a Podcast channel, titled The Stock Doctor,' where I discuss my views on the US and Indian markets every week. In addition, I actively undertake quantitative research in the areas of US equities, Behavioural Finance, Corporate Governance, Activist Hedge Funds, Cryptocurrencies and M&A , and have published in top-ranked peer-reviewed journals.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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