For today’s bulletin, we take a look at our latest upgrades and focus on finance giant Goldman Sachs (GS) and provide a link to download a FREE STOCK REPORT on the company
VALUATION WATCH: Overvalued stocks now make up 60.84% of our stocks assigned a valuation and 23.92% of those equities are calculated to be overvalued by 20% or more. Twelve sectors are calculated to be overvalued.
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For today’s edition of our upgrade list, we used our website’s advanced screening functions to search for UPGRADES to BUY or STRONG BUY with complete forecast and valuation data. They are presented by one-month forecast return. BNP Paribas (BNPQY) is our top-rated upgrade this week and it is a STRONG BUY. Societe Generale (SCGLY) and Goldman Sachs (GS) are our other STRONG BUY upgrades for the day.MCBC Holdings (MCFT) and Chesapeake Energy (CHK) are the other top-five upgrades and they are BUY rated.
| Ticker | Company Name | Market Price | Valuation | Last 12-M Return | 1-M Forecast Return | 1-Yr Forecast Return | P/E Ratio | Sector Name |
| BNPQY | BNP PARIBAS-ADR | 35.46 | 17.56% | 46.98% | 1.12% | 13.43% | 11.59 | Finance |
| SCGLY | SOCIETE GENL FR | 10.7 | 5.91% | 50.07% | 1.11% | 13.38% | 11.40 | Finance |
| GS | GOLDMAN SACHS | 221.91 | 3.95% | 49.30% | 1.09% | 13.05% | 11.70 | Finance |
| MCFT | MCBC HOLDINGS | 19.23 | N/A | 72.31% | 0.76% | 9.11% | 18.31 | Consumer Discretionary |
| CHK | CHESAPEAKE ENGY | 5.06 | -64.65% | 16.86% | 0.62% | 7.44% | 11.59 | Oils-Energy |
For today’s bulletin, we take a look at one of our newest STRONG BUY stocks, Goldman Sachs (GS). Goldman is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. The Company operates in four business segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment consists of financial advisory and underwriting. The Institutional Client Services segment makes markets and facilitates client transactions in fixed income, equity, currency and commodity products. The investing and lending activities, which are typically longer-term, include its investing and relationship lending activities across various asset classes, primarily debt securities and loans, public and private equity securities, infrastructure and real estate. The Investment Management segment provides investment and wealth advisory services. As of December 2016, it had offices in over 30 countries.
Big banks such as Goldman Sachs have come a long way since their questionable trading activities and risk-management practices blew up the US economy and caused the world-wide recession of 2008. They dodged a bullet when both the Bush and Obama administrations declined to implement any real reforms vis-a-vis the “too big to fail” problem and have returned to their high-flying days of good bonuses. Perhaps their reputations have suffered a bit, but that matters little as the Trump administration now moves to unravel even the minimal additional oversight regulations such as Dodd-Frank.
The stock now trades well above the lows of March, 2009 when a share cost a mere $53. They now move in the $200-250 range. Earnings have been mixed of late, with Q1 2017 numbers coming in below estimates–they reported $5.15/share vs expectations of $5.33/share. Goldman lagged rivals in Q1, as other big players all posted decent beats.
At that time, CEO Lloyd Blankfein noted that “the operating environment was mixed, with client activity challenged in certain market-making businesses and a more attractive backdrop for underwriting in our investment banking franchise.”
The finance giant reports again in July. Currently, analysts are forecasting earnings per share of @ $3.92 versus the 2016 Q2 figure of $3.72.
VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from BUY to STRONG BUY for Goldman Sachs. Based on the information we have gathered and our resulting research, we feel that Goldman Sachs has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.
Below is today’s data on Goldman Sachs (GS):
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 224.32 | 1.09% |
| 3-Month | 221.47 | -0.20% |
| 6-Month | 226.96 | 2.28% |
| 1-Year | 250.86 | 13.05% |
| 2-Year | 230.79 | 4.00% |
| 3-Year | 231.95 | 4.53% |
| Valuation & Rankings | |||
| Valuation | 3.95% overvalued | Valuation Rank(?) | 54 |
| 1-M Forecast Return | 1.09% | 1-M Forecast Return Rank | 99 |
| 12-M Return | 49.30% | Momentum Rank(?) | 86 |
| Sharpe Ratio | 0.70 | Sharpe Ratio Rank(?) | 82 |
| 5-Y Avg Annual Return | 15.84% | 5-Y Avg Annual Rtn Rank | 82 |
| Volatility | 22.63% | Volatility Rank(?) | 65 |
| Expected EPS Growth | 5.13% | EPS Growth Rank(?) | 30 |
| Market Cap (billions) | 96.65 | Size Rank | 100 |
| Trailing P/E Ratio | 11.70 | Trailing P/E Rank(?) | 89 |
| Forward P/E Ratio | 11.13 | Forward P/E Ratio Rank | 80 |
| PEG Ratio | 2.28 | PEG Ratio Rank | 22 |
| Price/Sales | 2.99 | Price/Sales Rank(?) | 36 |
| Market/Book | 1.11 | Market/Book Rank(?) | 76 |
| Beta | 1.40 | Beta Rank | 22 |
| Alpha | 0.09 | Alpha Rank | 70 |
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