GS Stock - is Goldman Sachs' Stock a Good Buy | Summary and Q&A

TL;DR

Goldman Sachs' revenue growth has been stagnant over the past decade, but new management and growth initiatives could lead to potential upside in the stock.

Key Insights

• 🤨 Goldman Sachs' revenue growth has not matched the overall market performance, raising questions about their growth potential.
• 🤵 The investing and lending division, particularly the Marcus brand, offers stability to revenue and has room for growth.
• 🥺 The investment banking division has potential for growth but faces intense competition, which may lead to lowering fees.
• 👶 New management at Goldman Sachs aims to focus on investment banking and stability in revenue.
• 🔈 The sustainable growth rate suggests that Goldman Sachs should trade at a lower PE multiple than its peers.
• 🙃 The current stock price of Goldman Sachs may have upside potential based on the analysis.
• 🍂 There is limited potential for adding Goldman Sachs to a growth or dividend portfolio at this time, but it could become interesting if the stock price continues to fall.

Transcript

Hey Youtube, I'm Jimmy. In this video I'm going to walk through my analysis of Goldman Sachs ticker symbol gs. This continues our series where we're analyzing all 30 stocks in the Dow Jones industrial average. This is the twelfth video. In that series, you can see a link in the description below to all those videos. Once we complete our analysi... Read More

Questions & Answers

Q: Why has Goldman Sachs' revenue growth been stagnant over the past decade?

The analyst expected their revenue to be in an uptrend due to their involvement in money management, but it has not matched the performance of the overall market.

Q: What divisions within Goldman Sachs show potential for growth?

The investing and lending division, particularly the Marcus brand, offers stability to revenue and has potential for growth. The investment banking division also has room for growth.

Q: How has the new management team at Goldman Sachs influenced the company's direction?

The new CEO and CFO, along with the COO, have confirmed that they intend to keep the growth initiatives in place and focus on investment banking and stability in revenue.

Q: What valuation multiple is reasonable to use for Goldman Sachs?

Based on the average valuation multiples of JP Morgan and Morgan Stanley, a multiple of 9x seems reasonable for Goldman Sachs.

Summary & Key Takeaways

• Goldman Sachs' revenue growth has not matched the performance of the S&P 500 over the past 10 years, surprising the analyst who expected more significant growth.

• The company is divided into four main segments: institutional client services, investment banking, investing in lending, and investment management.

• The investing and lending division, particularly the Marcus brand, offers stability to revenue, while the investment banking division has room for growth.