Goldman Sachs Group Inc Stock Upgraded (GS)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Goldman Sachs Group (NYSE: GS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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Highlights from the ratings report include:
  • GS's very impressive revenue growth greatly exceeded the industry average of 26.8%. Since the same quarter one year prior, revenues leaped by 81.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 439.28% and other important driving factors, this stock has surged by 28.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • 43.20% is the gross profit margin for GOLDMAN SACHS GROUP INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 14.90% is above that of the industry average.
  • Net operating cash flow has significantly increased by 109.90% to $1,013.00 million when compared to the same quarter last year. In addition, GOLDMAN SACHS GROUP INC has also vastly surpassed the industry average cash flow growth rate of -313.72%.
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The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as a range of financial services to corporations, financial institutions, governments and high-net-worth individuals worldwide. The company has a P/E ratio of 11.4, below the S&P 500 P/E ratio of 17.7. Goldman Sachs Group has a market cap of $55.59 billion and is part of the financial sector and financial services industry. Shares are up 30.8% year to date as of the close of trading on Wednesday.

You can view the full Goldman Sachs Group Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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