Trade-Ideas: Goldman Sachs Group (GS) Is Today's Pre-Market Leader Stock

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.

Trade-Ideas LLC identified Goldman Sachs Group ( GS) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Goldman Sachs Group as such a stock due to the following factors:

  • GS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $380.2 million.
  • GS traded 22,750 shares today in the pre-market hours as of 7:38 AM.
  • GS is up 2.7% today from Friday's close.

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More details on GS:

The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. The stock currently has a dividend yield of 1.4%. GS has a PE ratio of 10.8. Currently there are 2 analysts that rate Goldman Sachs Group a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for Goldman Sachs Group has been 2.5 million shares per day over the past 30 days. Goldman Sachs Group has a market cap of $73.1 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.97 and a short float of 1.4% with 3.88 days to cover. Shares are down 7% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Goldman Sachs Group as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • 44.86% is the gross profit margin for GOLDMAN SACHS GROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.67% is above that of the industry average.
  • Net operating cash flow has increased to -$4,221.00 million or 25.92% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.20%.
  • GS, with its decline in revenue, slightly underperformed the industry average of 5.1%. Since the same quarter one year prior, revenues slightly dropped by 7.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • In its most recent trading session, GS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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