For today’s bulletin, we take a look at our latest upgrades and focus on finance giant Goldman Sachs (GS) and provide a link to download a FREE STOCK REPORT on the company

VALUATION WATCH: Overvalued stocks now make up 60.84% of our stocks assigned a valuation and 23.92% of those equities are calculated to be overvalued by 20% or more. Twelve sectors are calculated to be overvalued.

To subscribe to our bulletins and receive content whenever it is published, subscribe at our blog HERE

Goldman Sachs
PredragKezic / Pixabay

For today’s edition of our upgrade list, we used our website’s advanced screening functions to search for UPGRADES to BUY or STRONG BUY with complete forecast and valuation data. They are presented by one-month forecast return. BNP Paribas (BNPQY) is our top-rated upgrade this week and it is a STRONG BUY. Societe Generale (SCGLY) and Goldman Sachs (GS) are our other STRONG BUY upgrades for the day.MCBC Holdings (MCFT) and Chesapeake Energy (CHK) are the other top-five upgrades and they are BUY rated.

Ticker Company Name Market Price Valuation Last 12-M Return 1-M Forecast Return 1-Yr Forecast Return P/E Ratio Sector Name
BNPQY BNP PARIBAS-ADR 35.46 17.56% 46.98% 1.12% 13.43% 11.59 Finance
SCGLY SOCIETE GENL FR 10.7 5.91% 50.07% 1.11% 13.38% 11.40 Finance
GS GOLDMAN SACHS 221.91 3.95% 49.30% 1.09% 13.05% 11.70 Finance
MCFT MCBC HOLDINGS 19.23 N/A 72.31% 0.76% 9.11% 18.31 Consumer Discretionary
CHK CHESAPEAKE ENGY 5.06 -64.65% 16.86% 0.62% 7.44% 11.59 Oils-Energy

For today’s bulletin, we take a look at one of our newest STRONG BUY stocks, Goldman Sachs (GS). Goldman is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. The Company operates in four business segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment consists of financial advisory and underwriting. The Institutional Client Services segment makes markets and facilitates client transactions in fixed income, equity, currency and commodity products. The investing and lending activities, which are typically longer-term, include its investing and relationship lending activities across various asset classes, primarily debt securities and loans, public and private equity securities, infrastructure and real estate. The Investment Management segment provides investment and wealth advisory services. As of December 2016, it had offices in over 30 countries.

Big banks such as Goldman Sachs have come a long way since their questionable trading activities and risk-management practices blew up the US economy and caused the world-wide recession of 2008. They dodged a bullet when both the Bush and Obama administrations declined to implement any real reforms vis-a-vis the “too big to fail” problem and have returned to their high-flying days of good bonuses. Perhaps their reputations have suffered a bit, but that matters little as the Trump administration now moves to unravel even the minimal additional oversight regulations such as Dodd-Frank.

The stock now trades well above the lows of March, 2009 when a share cost a mere $53. They now move in the $200-250 range. Earnings have been mixed of late, with Q1 2017 numbers coming in below estimates–they reported $5.15/share vs expectations of $5.33/share. Goldman lagged rivals in Q1, as other big players all posted decent beats.

At that time, CEO Lloyd Blankfein noted that “the operating environment was mixed, with client activity challenged in certain market-making businesses and a more attractive backdrop for underwriting in our investment banking franchise.”

The finance giant reports again in July. Currently, analysts are forecasting earnings per share of @ $3.92 versus the 2016 Q2 figure of $3.72.

VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from BUY to STRONG BUY for Goldman Sachs. Based on the information we have gathered and our resulting research, we feel that Goldman Sachs has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.

Below is today’s data on Goldman Sachs (GS):

ValuEngine Forecast
Target
Price*
Expected
Return
1-Month 224.32 1.09%
3-Month 221.47 -0.20%
6-Month 226.96 2.28%
1-Year 250.86 13.05%
2-Year 230.79 4.00%
3-Year 231.95 4.53%

 

Valuation & Rankings
Valuation 3.95% overvalued Valuation Rank(?) 54
1-M Forecast Return 1.09% 1-M Forecast Return Rank 99
12-M Return 49.30% Momentum Rank(?) 86
Sharpe Ratio 0.70 Sharpe Ratio Rank(?) 82
5-Y Avg Annual Return 15.84% 5-Y Avg Annual Rtn Rank 82
Volatility 22.63% Volatility Rank(?) 65
Expected EPS Growth 5.13% EPS Growth Rank(?) 30
Market Cap (billions) 96.65 Size Rank 100
Trailing P/E Ratio 11.70 Trailing P/E Rank(?) 89
Forward P/E Ratio 11.13 Forward P/E Ratio Rank 80
PEG Ratio 2.28 PEG Ratio Rank 22
Price/Sales 2.99 Price/Sales Rank(?) 36
Market/Book 1.11 Market/Book Rank(?) 76
Beta 1.40 Beta Rank 22
Alpha 0.09 Alpha Rank 70

DOWNLOAD A FREE SAMPLE OF OUR GOLDMAN SACHS (GS) REPORT BY CLICKING HERE

ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.

Contact ValuEngine at (800) 381-5576 or [email protected]

Visit www.ValuEngine.com for more information

ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine’s award-winning stock research.

Contact ValuEngine Capital at [email protected]

Visit www.ValuEngineCapital.com for more information

Article by Steve Hach, ValuEngine