Despite less-than-stellar media reports. analysts still expect this investment bank to post double-digit growth.
Goldman Sachs (GS)
From Positive Patterns
I have been reading some funny stuff about Goldman Sachs (GS) lately. Goldman fell a bit short the last quarter and the cry was/is—“What’s wrong with GS?” My answer is N-O-T-H-I-N-G. GS is still the smartest-collective brain in the room. This is a good bull-market, it’s not over yet, and for GS the best is yet to come.
This is a splendid time to buy more Goldman Sachs, or begin your initial position, on this pullback. GS estimates from Zack’s are $21.56 this year in 2018 and $24.38 for 2019. I think GS can beat both numbers. I would look for at least $22 this year and 2019 could be a world-beater year for GS—at least $26 and maybe more. (Please remember, that’s MY GUESS.)
The balance sheet is gaining strength and free cash flow by 2019 will be huge. I would expect a medium-to-large stock buy-back, at minimum. I would buy it all day up to $270 and below $260—even better.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, February 16, 2018