Â© Reuters. Is Goldman Sachs Group A Good Financial Stock To Invest In?
Shares of leading financial institution Goldman Sachs (GS) have gained 40.9% year-to-date thanks to its burgeoning investment banking division. However, analysts have raised concerns about the company’s growth prospects for the coming year as the Fed plans to tighten monetary policy. So, is it worth adding the stock to your portfolio now? Let’s find out. World’s leading financial institution, Goldman Sachs Group Inc. (NYSE :), offers a wide range of financial services in the areas of investment banking, securities, investment management and consumer banking to a broad and diverse clientele that includes corporate, financial institutions, governments and individuals. Its action has gained 40.9% in progress since the beginning of the year thanks to various collaborations.
The company beat analysts’ revenue expectations by 16.6% and their EPS estimates by 47%, supported by strong mergers and acquisitions (M&A) performance, as well as a dynamic market for IPOs (IPO).
However, management cited a few key factors that could affect the company’s revenue growth over the coming months, including the increased likelihood of monetary policy tightening in the near term due to inflationary pressures. This would tend to deter companies from engaging in M&A activity. Additionally, GS shares were down 4.1% in price over the past month due to a market sell off over growing concerns about the omicron COVID-19 variant.
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