Today’s growth-at-a-reasonable-price recommendation comes from Sam Subramanian, editor of AlphaProfit Sector Investors’ Newsletter.
“Goldman Sachs (GS) is transitioning from a high-risk, high-return investment bank to a moderate-risk and above-average-return financial firm. During the first quarter Goldman’s EPS exceeded analysts’ forecast by 10% while the company’s risk measure fell 16% from the year-ago period.
“Goldman is reducing expenses to widen operating margins. The company is returning capital to shareholders. The dividend has been raised by 31%. Goldman shares suit value investors. They trade at 70% of book value and a high-single-digit forward P/E, vs. prospects of EPS rising 58% in the next 12 months. Buy Below $94.45. Sell Above $102.60. Stop Loss: $62.25. Risk Rating: Average.”
- Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, June 2012