2024-04-20 06:55:21 ET
Summary
- Earnings Surge: Goldman Sachs beat Q1 2024 EPS estimates by 33%.
- Valuation: Using a residual earnings model, I concluded that the stock is undervalued by 30.6%, with a future price projection indicating an 8.3% annual return.
- market Position: Holding second place in investment banking with a 6.7% market share, Goldman Sachs remains competitive against peers.
- Risks and Outlook: Market sentiment and industry growth pose risks, but with profitability improvement, Goldman Sachs offers a compelling investment opportunity, even with lower EPS estimates compared to consensus.
Thesis
In my previous article on Goldman Sachs Group, Inc. ( GS ), I presented two models that suggested a near-term upside in the range of 12.7-41.4%. Meanwhile, the potential annual returns throughout 2028 were in the range of 21.6-33.2%. For this reason, I rated the stock as a "strong buy". Since that article, the stock has gone up by 5.37%....
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Goldman Sachs: Continues To Offer Enormous Valuation Opportunity