NEW YORK ( TheStreet) -- Goldman Sachs (GS - Get Report) is uniquely positioned to benefit from the post-crisis retooling of the investment banking industry and recent underperformance is unlikely to last.
Goldman shares lost 0.82% last week, while Morgan Stanley (MS ) shares rose 6.23% and JPMorgan Chase (JPM - Get Report), Citigroup (C - Get Report) and Back of America (BAC - Get Report) each gained more than 3%.
While Goldman third-quarter earnings beat expectations, the bank was "disappointing on nearly every major revenue item," according to Sanford Bernstein analyst Brad Hintz.
Still, Hintz expects the company to rebound and continues to recommend Goldman shares."Goldman's management team is in the process of significantly reengineering trading by optimizing the balance sheet, triaging underperforming activities, and cutting costs," Hintz writes. "The firm is constraining balance sheet usage in anticipation of new regulation, while attempting to increase the turnover of its trading assets. The composition of assets is also changing, as the firm emphasizes less capital intense government securities inventory, and deemphasizes more capital intensive corporate bond and
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