8 Cheap Jim Cramer Stocks to Invest In

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

Forward P/E: 14.40

Number of Hedge Fund Holders: 68

Before The Goldman Sachs Group, Inc. (NYSE:GS) released its earnings report, Cramer said:

“As for Goldman Sachs, where I did work at one point, I think it’s going to blow away the numbers and the stock goes higher.”

Goldman Sachs (NYSE:GS) is a leading financial institution known for its diverse range of services, particularly in investment banking and wealth management. On October 15, the company released its third-quarter earnings, revealing a significant year-over-year increase in earnings per share, which rose by 53%. Total revenue for the quarter reached $12.70 billion, reflecting a 7% growth despite the challenges posed by fluctuating market conditions.

Within the company’s Global Banking & Markets segment, revenue also saw a positive trajectory, increasing by 7% from the previous year to hit $8.55 billion. The growth can be attributed to strong performance in equities, which played a key role in driving results for the segment.

On the same day, the company declared a quarterly dividend of $3, payable by December 30 to the shareholders of record on December 2.

From an operational perspective, Goldman Sachs (NYSE:GS) improved its cost efficiency, reporting an 8% decrease in operating expenses compared to the previous year, totaling $8.32 billion. The efficiency ratio, which serves as an indicator of expense management and operational effectiveness, also showed favorable developments. Additionally, targeted capital allocation allowed the firm to return $1.98 billion to shareholders through a combination of dividends and stock buybacks.