9 Stocks on Jim Cramer’s Radar

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

Number of Hedge Fund Holders: 81

On March 13, Cramer highlighted that The Goldman Sachs Group, Inc. (NYSE:GS) stock had fallen 22% due to fewer IPOs, with much of the risk likely already priced in. He noted that the stock, which peaked at 14.5 times this year’s earnings estimates, is now trading at around 11.5 times, though earnings estimates have likely been revised downward. He then asked:

“Why stick with Goldman in the face of this newfound uncertainty? That’s an excellent question. Here’s my answer because I think it’s too soon to give up on merger mania… Meanwhile, some of the softer economic data has caused long-term interest rates to come down and that should be a boon to Goldman’s debt underwriting while also encouraging more mergers because many of these deals are paid for with borrowed money. Finally, I think Goldman’s best-in-class sales and trading operation… could be in a position to make a killing and miss all this volatility that we’ve seen over the past few weeks…

Look, if I’m right about that and I’m pretty confident about the thesis because these Goldman professionals are the best at what they do, then that strength could offset some of the softer performance from the traditional investment banking side. So for all these reasons, I’m still comfortable with Goldman Sachs, but I do think the stock could go lower because the market’s awful. Alright, but I like to buy low. I like to sell high.”

Goldman Sachs (NYSE:GS) is a financial services company, recognized for its expertise in investment banking, wealth management, and a wide range of other financial services.