Goldman Sachs
GS
$1039.28
+3.73%
Goldman Sachs Group Inc. is a premier global investment bank, founded in 1869, offering a comprehensive suite of financial services including investment banking, global markets, asset management, and wealth management, operating across the Financial Services sector. As a market leader, it has been the top M&A advisor by revenue for two decades and has strategically expanded into stable fee-based businesses, with asset and wealth management now contributing roughly 30% of post-provision revenue. The current investor narrative centers on the firm's robust revenue growth, driven by strong performance in Global Markets and Investment Management, alongside a strategic pivot away from consumer lending, while navigating a volatile market environment and geopolitical uncertainties that have recently pressured the broader financial sector.…
GS
Goldman Sachs
$1039.28
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Investment Opinion: Should I buy GS Today?
Based on the analysis, GS is rated a 'Hold' with a cautious outlook. The consensus recommendation is 'hold' with an average target price of $1,141.65, implying 9.85% upside. The thesis is that while the company has strong growth and improving profitability, the valuation is not compelling enough to warrant a 'Buy' given the risks.
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GS 12-Month Price Forecast
The AI assessment is neutral, reflecting a balanced risk-reward profile. Goldman Sachs has strong growth and improving profitability, but the high leverage and market volatility introduce uncertainty. The stock is fairly valued, with limited upside to analyst targets. To upgrade to bullish, we would need to see sustained revenue growth above 20% with improving cash flow and a more favorable analyst sentiment. To downgrade to bearish, a significant deterioration in market conditions or a major operational setback would be required.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Goldman Sachs's 12-month outlook, with a consensus price target around $1141.65 and implied upside of +9.8% versus the current price.
Average Target
$1141.65
0 analysts
Implied Upside
+9.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$730 - $1325
Analyst target range
Goldman Sachs is covered by 20 analysts, with a consensus recommendation of 'hold' (mean rating of 2.6 on a 5-point scale). The average target price is $1,141.65, implying a 9.85% upside from the current price of $1,039.28. The distribution includes 4 Buy, 10 Hold, and 6 Sell ratings, indicating a cautious but not bearish stance. The target price range spans from $730 (low) to $1,325 (high), with the high target assuming continued strong performance in trading and investment banking, while the low target reflects concerns about market volatility and potential regulatory headwinds. Recent ratings actions have been mixed, with Oppenheimer downgrading from Perform to Underperform in June, while others like B of A and Evercore maintain Buy/Outperform ratings, suggesting a lack of clear directional consensus.
Bulls vs Bears: GS Investment Factors
Goldman Sachs presents a compelling growth story with exceptional revenue growth, expanding margins, and a strategic pivot to stable businesses. However, high leverage, negative free cash flow, and cautious analyst sentiment temper the bullish outlook. The bull case is currently stronger, driven by strong fundamentals and attractive forward valuation, but the key tension lies in whether the market's growth expectations (implied by the forward PE discount) can be sustained. If revenue growth decelerates or market volatility increases, the stock could face significant downside, given its high beta and leverage.
Bullish
- Exceptional Revenue Growth: Q2 2026 revenue surged 22.91% YoY to $38.43B, driven by strong Global Markets ($20.63B) and Investment Management ($9.22B). This growth is accelerating sequentially from $17.23B in Q1 2026, indicating robust momentum across key business lines.
- Expanding Profitability: Net margin improved to 17.25% in Q2 2026 from 15.33% in Q4 2025, and gross margin expanded to 52.66% from 51.71%. This reflects improved operational efficiency and cost discipline, translating to higher earnings per share of $21.27.
- Attractive Forward Valuation: With a forward PE of 14.04x versus trailing 16.92x, the market implies ~20.5% earnings growth. This forward discount to the industry average of 15x suggests the stock is reasonably priced relative to expected growth, with a PEG ratio of 0.65 indicating undervaluation.
- Strong Price Momentum: The stock has appreciated 45.16% over the past year, outperforming the S&P 500's 20.48% gain. It is trading at 90.1% of its 52-week range, reflecting strong investor confidence and a robust long-term uptrend.
Bearish
- High Financial Leverage: Debt-to-equity ratio stands at 4.88, indicating significant leverage typical of investment banks but amplifying risk. This high leverage could magnify losses during market downturns or credit events.
- Negative Free Cash Flow: Free cash flow is deeply negative at -$41.92B TTM, reflecting substantial cash outflows from trading and lending activities. While common for financial institutions, this raises liquidity concerns if markets tighten.
- Cautious Analyst Sentiment: With a consensus 'hold' rating (mean 2.6/5) and 6 Sell ratings out of 20 analysts, the Street is not fully convinced. The average target price of $1,141.65 implies only 9.85% upside, limiting near-term appreciation potential.
- Elevated Valuation vs. Peers: Trailing PE of 16.92x is 12.8% above the industry average of 15x, suggesting the market is paying a premium. This could lead to multiple compression if growth decelerates or market sentiment shifts.
GS Technical Analysis
Goldman Sachs is in a strong long-term uptrend, with the stock price appreciating 45.16% over the past year, significantly outperforming the S&P 500's 20.48% gain. The current price of $1,039.28 sits at 90.1% of its 52-week range (between $718.58 and $1,153.99), indicating the stock is trading near its highs, reflecting robust momentum but also potential overextension. The stock's beta of 1.288 suggests it is 28.8% more volatile than the market, amplifying both upside and downside moves.
Beta
1.29
1.29x market volatility
Max Drawdown
-19.8%
Largest decline past year
52-Week Range
$721-$1154
Price range past year
Annual Return
+45.2%
Cumulative gain past year
| Period | GS Return | S&P 500 |
|---|---|---|
| 1m | -5.4% | +3.6% |
| 3m | +4.3% | +2.7% |
| 6m | +12.7% | +11.4% |
| 1y | +45.2% | +18.7% |
| ytd | +13.7% | +12.3% |
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GS Fundamental Analysis
Goldman Sachs has demonstrated exceptional revenue growth, with the most recent quarter (Q2 2026) reporting revenue of $38.43 billion, a 22.91% year-over-year increase. This growth is accelerating, as seen in the sequential progression from $17.23 billion in Q1 2026 to $38.43 billion in Q2, driven by strong performance in Global Markets ($20.63 billion) and Investment Management ($9.22 billion). The firm's profitability is robust, with net income of $6.63 billion in Q2 2026, translating to a net margin of 17.25%, up from 15.33% in Q4 2025. Gross margin expanded to 52.66% in Q2 2026 from 51.71% in Q4 2025, reflecting improved operational efficiency. However, the balance sheet shows high leverage with a debt-to-equity ratio of 4.88, and free cash flow is deeply negative at -$41.92 billion TTM, indicating significant cash outflows, though this is typical for a financial institution with large trading and lending activities.
Quarterly Revenue
$38.4B
2026-06
Revenue YoY Growth
+22.9%
YoY Comparison
Gross Margin
52.7%
Latest Quarter
Free Cash Flow
$-41.9B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is GS Overvalued?
Given the positive net income, the PE ratio is the primary valuation metric. The trailing PE is 16.92x, while the forward PE is 14.04x, implying the market expects earnings growth of about 20.5% over the next year. This forward discount suggests a favorable growth outlook. Compared to the industry average PE of 15x (estimated from historical data), Goldman's trailing PE of 16.92x represents a 12.8% premium, but the forward PE of 14.04x is at a 6.4% discount, indicating the market is pricing in superior future earnings growth. Historically, the stock's PE has ranged from 6.2x to 25.8x over the past five years, with the current 16.92x sitting near the middle, suggesting the valuation is neither stretched nor cheap relative to its own history.
PE
16.9x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 6x~26x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
30.0x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are substantial due to Goldman's high leverage, with a debt-to-equity ratio of 4.88, which amplifies both gains and losses. The deeply negative free cash flow of -$41.92B TTM indicates significant cash outflows, potentially straining liquidity in adverse conditions. While net margins improved to 17.25%, the reliance on trading revenue (Global Markets contributed $20.63B in Q2) exposes earnings to market volatility, as seen in the 19.84% max drawdown over the past year.