Goldman Trades at a Discount to Industry: Buy, Sell or Hold?

Zacks12-18

The Goldman Sachs Group, Inc. GS stock looks attractive from its valuation perspective. The stock is trading at forward price/earnings (P/E) of 13.75X, a 3.1% discount compared with the industry ...

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The stock is trading at forward price/earnings (P/E) of 13.75X, a 3.1% discount compared with the industry ...</p>\n\n<a href=\"https://finance.yahoo.com/news/goldman-trades-discount-industry-buy-172400060.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Goldman Trades at a Discount to Industry: Buy, Sell or Hold?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGoldman Trades at a Discount to Industry: Buy, Sell or Hold?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-18 01:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/goldman-trades-discount-industry-buy-172400060.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Goldman Sachs Group, Inc. GS stock looks attractive from its valuation perspective. The stock is trading at forward price/earnings (P/E) of 13.75X, a 3.1% discount compared with the industry ...</p>\n\n<a href=\"https://finance.yahoo.com/news/goldman-trades-discount-industry-buy-172400060.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B19Z3581.USD","symbol_name":"Legg Mason ClearBridge - Value A Acc USD","start_time":0,"source_url":"https://finance.yahoo.com/news/goldman-trades-discount-industry-buy-172400060.html","article_id":"2492719994","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/05k8WdMbUDL7ljYuvfGHiw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/38c7ef8f4b67550bc3d573f485b8ea7f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492719994","pubTimestamp":1734456240,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The Goldman Sachs Group, Inc. GS stock looks attractive from its valuation perspective. The stock is trading at forward price/earnings (P/E) of 13.75X, a 3.1% discount compared with the industry average of 14.19X.GS is also trading at a discount compared with its peer JPMorgan’s JPM P/E multiple of 14.26X and Morgan Stanley’s MS P/E multiple of 16.41X.The Goldman stock is trading above its 50-day moving average, indicating a bullish sentiment among investors.GS’s lower valuation and bullish trends should lure investors seeking value. But is the time right to buy the shares based on the company’s attractive valuation?Global Deal-Making Revival & Less Regulation to Aid GS. The macroeconomic environment is steadying driven by the interest rate-cut cycle globally and growing optimism for a soft landing of the U.S. economy. With this, underwriting, and merger and acquisition (M&A) activities are on the path to a sustained recovery in the coming days.These moves align with GS's decision to s","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","LU2271345857.HKD":"ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (HKD) ACC","GS":"高盛","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","IE00BHPRN162.USD":"BNY MELLON BLOCKCHAIN INNOVATION \"B\" (USD) ACC","LU1917777945.USD":"安联专题基金Cl AT Acc","BK4566":"资本集团","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU0238689110.USD":"贝莱德环球动力股票基金","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","GSBD":"高盛BDC基金","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU2237443465.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) INC","LU2089284900.SGD":"Allianz Global Sustainability Cl AM Dis H2-SGD","LU1084165304.USD":"FIDELITY WORLD \"A\" (USD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BFXG1179.USD":"BNY MELLON U.S. EQUITY INCOME \"B\" (USD) INC","LU1496350171.SGD":"FRANKLIN DIVERSIFIED BALANCED \"A\" (SGDHDG) ACC","BK4550":"红杉资本持仓","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU0211326839.USD":"TEMPLETON GLOBAL INCOME \"A\" (USD) INC","LU0976567544.SGD":"FTIF - Templeton Global Income A Mdis SGD-H1","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU0496365809.HKD":"TEMPLETON GLOBAL INCOME \"A\" (HKD) INC (Q)","LU0683600562.USD":"AB SELECT US EQUITY \"A\" (USD) ACC","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU2089283258.USD":"安联环球可持续基金Cl AM Dis","LU0203347892.USD":"SCHRODER ISF QEP GLOBAL ACTIVE VALLUE \"A\" (USD)  INC AV","LU1244550221.USD":"FRANKLIN GLOBAL MULTI-ASSET  INCOME \"A\" (USDHEDGED) INC (M)","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU0149725797.USD":"汇丰美国股市经济规模基金","IE0034235295.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"A\" (USD) ACC","LU2552382058.USD":"WELLINGTON US BRAND POWER \"A\" (USD) ACC","SG9999002224.SGD":"Allianz Global High Payout SGD","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","LU2242649171.HKD":"FIDELITY FUNDS GLOBAL THEMATIC OPPORTUNITIES \"A\" (HKD) ACC","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","LU2552382132.HKD":"WELLINGTON US BRAND POWER \"A\" (HKD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","BCS":"巴克莱银行","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","BK4534":"瑞士信贷持仓","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H"},"translate_title":"高盛的交易价格低于行业：买入、卖出还是持有？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BCS":1,"GS":0.9,"GSBD":0.9},"content_text":"The Goldman Sachs Group, Inc. GS stock looks attractive from its valuation perspective. The stock is trading at forward price/earnings (P/E) of 13.75X, a 3.1% discount compared with the industry average of 14.19X.\nPrice-to-Earnings F12M\nImage Source: Zacks Investment Research\nGS is also trading at a discount compared with its peer JPMorgan’s JPM P/E multiple of 14.26X and Morgan Stanley’s MS P/E multiple of 16.41X.\nThe Goldman stock is trading above its 50-day moving average, indicating a bullish sentiment among investors.\n50-Day Moving Average\nImage Source: Zacks Investment Research\nGS’s lower valuation and bullish trends should lure investors seeking value. But is the time right to buy the shares based on the company’s attractive valuation? Let us delve deeper.\nGlobal Deal-Making Revival & Less Regulation to Aid GS\nThe investment banking (IB) industry flourished in 2024 following a rebound in corporate debt, equity issuances and deal-making activities, which increased IB fees. \nThe macroeconomic environment is steadying driven by the interest rate-cut cycle globally and growing optimism for a soft landing of the U.S. economy. With this, underwriting, and merger and acquisition (M&A) activities are on the path to a sustained recovery in the coming days.\nThe Donald Trump administration is likely to be friendlier toward corporate mergers as the easing of some rules for big banks and more leniency in approving merger deals are expected. This will likely support Goldman’s IB performance. The IB business had been witnessing lackluster performance since 2022 and revived this year on the back of clarity on several macroeconomic factors.\nIn 2022 and 2023, GS’s IB revenues declined 47.9% and 15.5% year over year, respectively. However, a substantial improvement in the industry-wide deal value and volume in the first nine months of 2024 drove the global M&As. Hence, the company’s IB revenues jumped nearly 24% from the first nine months of 2023. \nGoldman maintains its long-standing rank #1 in announced and completed M&As. With rising M&A deals and underwriting pipelines, the company’s decent IB backlog and leadership position lent it an edge over peers.\nGoldman’s Efforts to Shift From Consumer Business\nGS is moving away from consumer business and is refocusing on its core strengths of IB and trading operations. \nPer the Wall Street Journal report, in November 2024, Apple proposed to Goldman to cease former credit card and savings account arrangements within the next 12-15 months. In October 2024, Goldman finalized a deal to transfer its GM credit card business to Barclays BCS. Barclays will obtain the card program’s receivables from the company next year. \nEarlier this year, Goldman completed the sale of GreenSky, its home-improvement lending platform, to a consortium of investors. Last year, the company sold its Personal Financial Management unit to Creative Planning. \nThese moves align with GS's decision to shift its focus on and grow core businesses wherein it has showcased encouraging results, given its strong leadership position, wide scale of operations and exceptional talent.\nGS’s Impressive Capital Distribution\nThe company rewards its shareholders handsomely. In July 2024, it increased its common stock dividend by 9.1% to $3 per share. In the past five years, GS hiked dividends four times, with an annualized growth rate of 24.80%. Currently, its payout ratio sits at 35% of earnings.\nThe company enjoys a strong liquidity position. As of Sept. 30, 2024, cash and cash equivalents were $155 billion. As of the same date, $75 billion were near-term borrowings.\nGS also has a share repurchase plan in place. In February 2023, it announced a share repurchase program, authorizing repurchases of up to $30 billion worth of common stock with no expiration date. As of Sept. 30, 2024, the company had the remaining $18 billion worth of shares available under authorization.\nGiven its decent liquidity position, the company’s capital distribution activities seem sustainable. This is likely to stoke investor confidence in the stock.\nGS’s Private Equity Credit Line Expansion Provides an Edge\nGoldman plans to ramp up its lending services to private equity and asset managers, and aims to expand internationally. \nThe private equity market has a strong growth potential as private equity deals are expected to rise, driven by record-high fundraising. These loans are classified as short-term, typically secured by the assets of borrowing firms. These have a lesser risk attached to them. Goldman’s focus on the private equity market is a strategic fit.\nGoldman Asset Management — a unit of GS — intends to expand its private credit portfolio to $300 billion in five years. As of Sept. 30, 2024, the company has a private credit portfolio of more than $199 billion. Once the company strengthens its operations in the United States, it plans to expand its lending business in Europe, the U.K. and Asia. The company hopes private equity-led deals will bounce back at the end of this year and in 2025.\nGoldman’s Estimates Favorable\nThe company is expected to deliver strong results in 2024 and 2025.\nEarnings Estimates\nImage Source: Zacks Investment Research\nFind the latest earnings estimates and surprises on Zacks Earnings Calendar.\nSales Estimates\nImage Source: Zacks Investment Research\nWhat Should Investors Do About GS Stock?\nShares of Goldman have appreciated 57% in the past year compared with the industry’s rally of 47.2% and S&P 500 index rise of 31%. The stock has also outperformed its peers, JPM and MS, in the same time frame.\nPrice Performance\nImage Source: Zacks Investment Research\nThe company’s efforts to refocus on the IB and trading business provide a solid base for growth. GS's leadership position in announced and completed M&As gives it an edge over its peers.\nThe company’s strong liquidity and expansion in the private equity credit line positions it well for growth. \nGiven its favorable long-term prospects and lower valuation, investors might consider investing in Goldman’s stock now. Those who already have the stock in their portfolio can consider holding on to it for robust returns. \nGS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nThe Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report\nJPMorgan Chase & Co. (JPM) : Free Stock Analysis Report\nMorgan Stanley (MS) : Free Stock Analysis Report\nBarclays PLC (BCS) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492719994"}