In the closing of the recent trading day, Goldman Sachs (GS) stood at $959.39, denoting a +1.85% move from the preceding trading day.
The Fed raised rates for the first time in three years, and bank stocks promptly sold off. What looks like a contradiction might be a warning about where the trade goes from here.
Goldman Sachs is rated a buy despite recent technical weakness and an 18% drawdown, as valuation has entered an attractive zone. GS delivered a strong Q2, with EPS of $20.98 and revenue of $20.3B, beating estimates and raising its dividend to $5 per share. Forward drivers include pent-up M&A demand, robust issuance, and AI infrastructure scaling, positioning the company to benefit from capital markets activity.
Goldman Sachs stock is up by around 26% from its 52-week low. However, it is down by 18% from the 52-week high it touched in July.
Fed's rate hike and higher 2026 rate forecast put the focus on Goldman Sachs, Interactive Brokers and Talos Energy.
On CNBC's “Halftime Report Final Trades,” Kevin Simpson, founder and CEO of Capital Wealth Planning, picked UnitedHealth Group Incorporated (NYSE:UNH).
Goldman Sachs and Morgan Stanley each generated $100 million in fees from the SpaceX IPO, according to reports. Both companies had blowout earnings in Q2 with record revenue.
CEO David Solomon talked about softness in the investment bank's trading business—and the stock dropped 4%.
GS's softer Q3 FICC trends and rising expenses could temper the earnings benefit from its still-healthy IB pipeline.
David Solomon, chairman and chief executive officer of The Goldman Sachs Group NYSE: GS, said the firm is focused on expanding earnings, improving operating efficiency and building a more durable revenue base as it pursues growth across Global Banking & Markets and Asset & Wealth Management.