Goldman Sachs Group (GS)
from The Prudent Speculator
Goldman is a global investment banking, securities and investment management firm with leading positions in M&A, equity underwriting and equity trading. The company also generates significant revenue from its investing, lending and FICC businesses, while the asset management business is a major focus.
We were pleased to see in its Q1 results that a number of areas of operation achieved multi-year highs, including Investment Banking which produced net revenue of $1.91 billion, the highest quarterly performance since 2007. Goldman continues to maintain strong capital ratios and liquidity.
GS shares trade at 10 times earnings and we still think there is more upside available. The firm is a best-in-class franchise with premier market positioning across numerous business lines, while the company sports a strong balance sheet. And we like that GS enjoys embedded operating leverage and market share consolidation opportunities as a number of foreign and domestic competitors have been forced to restructure.
John Buckingham, The Prudent Speculator, www.theprudentspeculator.com, 877-817-4394, May 1, 2015