5 Stocks to Buy Before Interest Rate Hikes

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

Number of Hedge Fund Holders: 74

The Goldman Sachs Group, Inc. (NYSE:GS) is an investment banking company based in New York, offering securities underwriting, asset management, investment management, and prime brokerage, among an array of financial services to customers worldwide. 

On January 18, The Goldman Sachs Group, Inc. (NYSE:GS) posted its Q4 earnings. The company reported an EPS of $10.81, missing estimates by $1.12. Revenue for the period came in at $12.64 billion, up 7.65% from the prior-year quarter, exceeding estimates by $508.18 million. 

The Goldman Sachs Group, Inc. (NYSE:GS) on January 18 declared a $2.00 per share quarterly dividend, in line with previous. The dividend is payable on March 30, to shareholders of record on March 2. 

Citi analyst Keith Horowitz lowered the price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $455 from $480 and kept a Buy rating on the shares on January 20. After a series of large earnings beats, The Goldman Sachs Group, Inc. (NYSE:GS) missed Wall Street estimates in Q4 due to higher expenses, the analyst told investors in a research note. However, the quarter showed the company gaining share across its legacy businesses and signs of progress on new initiatives with strong flows. He sees “strong potential” for upward earnings revisions “plus an attractive valuation” for The Goldman Sachs Group, Inc. (NYSE:GS). 

Among the hedge funds monitored by Insider Monkey, 74 funds were long The Goldman Sachs Group, Inc. (NYSE:GS), with stakes totaling $5.45 billion. Eagle Capital Management is the largest stakeholder of The Goldman Sachs Group, Inc. (NYSE:GS), with 3.6 million shares worth $1.38 billion. 

Here is what Ariel Investments has to say about The Goldman Sachs Group, Inc. (NYSE:GS) in its Q2 2021 investor letter: 

“Goldman Sachs Group Inc. (GS) returned +16.45%. Goldman has posted a series of excellent quarterly results. Merger and equity offering activity has been robust with trading profits bolstered by strong capital market volumes. Goldman’s asset management business has also performed well. Regulators recently moved to allow most large investment banks to return capital to shareholders through dividends and share repurchases. Fundamentally, we think Goldman Sachs is attractively priced at approximately 11 times earnings and a very reasonable multiple of book value.”

You can also take a look at Top 10 Dividend Increases of 2021 and 10 Jim Cramer Stocks to Buy in January. 

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