11 Best Undervalued Stocks to Invest in Now

6. The Goldman Sachs Group, Inc. (NYSE:GS)

Forward P/E Ratio: 13.38

Earnings Growth This Year: 14.69% 

Number of Hedge Fund Holders: 81

The Goldman Sachs Group, Inc. (NYSE:GS) is a major global financial institution that provides a wide range of financial services to various clients, including corporations, financial institutions, governments, and individuals. The company has proven its dominance by growing its revenue by more than 20% during the past 5 years.

It exercises its market edge by making strategic investments, arranging initial public offerings, and providing various financial products. During the fiscal fourth quarter of 2024, The Goldman Sachs Group, Inc. (NYSE:GS) $13.87 billion in sales, reflecting a 23% increase year-over-year. Moreover, the company also grew its assets under management by 12%, reaching a record high of $3.14 trillion.

On February 28, Jason Goldberg from Barclays maintained a Buy rating on the stock, with a price target of $760. Moreover, Ariel Appreciation Fund in its Q4 2024 investor letter stated the bank outperformed quarterly earnings, driven by its strength in investment banking, trading, and asset management segments. Goldman Sachs Group, Inc. (NYSE:GS) is one of the best undervalued stocks to invest in now.

Ariel Appreciation Fund stated the following regarding The Goldman Sachs Group, Inc. (NYSE:GS) in its Q4 2024 investor letter:

Several stocks in the portfolio delivered solid returns in the quarter. Global investment bank, The Goldman Sachs Group, Inc. (NYSE:GS) outperformed on a robust quarterly earnings beat, highlighted by strength across its investment banking, trading, and asset management segments. Meanwhile, the U.S. election has been widely viewed as a positive catalyst across the industry. Investors expect the incoming administration to 1 The “Magnificent Seven” are the largest stocks in the S&P 500 Index driving market performance: Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), Microsoft Corp. (MSFT), NVIDIA Corp. (NVDA) and Tesla, Inc. (TSLA). 2 Hobson, Mellody and John W. Rogers Jr. “What the Stock market Taught Us This Year: Don’t Fall for These Investing Traps.” Wall Street Journal, 5 December 2023. emphasize deregulation and exhibit a greater openness to business combinations compared to the prior regime. Hence, management’s positive commentary around the operating momentum of its core franchises, an improving M&A outlook, and the resilience of the U.S. economy sent shares higher.