Goldman Sachs Group Inc Stock Buy Recommendation Reiterated (GS)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Goldman Sachs Group (NYSE: GS) has been reiterated by TheStreet Ratings as a buy with a ratings score of B-. Among the primary strengths of the company is its solid stock performance, considering both the consistency and magnitude of the price movement over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • GS, with its decline in revenue, slightly underperformed the industry average of 1.3%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • GOLDMAN SACHS GROUP INC's earnings per share declined by 17.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GOLDMAN SACHS GROUP INC increased its bottom line by earning $15.47 versus $14.15 in the prior year. For the next year, the market is expecting a contraction of 0.6% in earnings ($15.38 versus $15.47).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Capital Markets industry. The net income has decreased by 19.4% when compared to the same quarter one year ago, dropping from $2,892.00 million to $2,332.00 million.

The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as financial services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Goldman Sachs Group has a market cap of $81.0 billion and is part of the financial sector and financial services industry. The company has a P/E ratio of 11.00, below the S&P 500 P/E ratio of 18.00. Shares are down 1.2% year to date as of the close of trading on Thursday.

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.

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