We recently compiled a list of the Jim Cramer is Talking About These 14 Stocks Before Earnings. In this article, we are going to take a look at where The Goldman Sachs Group, Inc. (NYSE:GS) stands against the other stocks Jim Cramer is talking about before earnings.
As earnings season kicks off, Jim Cramer of Mad Money offered insights on what investors should watch in the coming week on Wall Street. He highlighted the anticipated reports from several major banks, along with a few other companies, as key events to monitor.
Cramer expressed optimism about the current market conditions, noting that the situation aligns with his previous predictions that the market would thrive once the Federal Reserve began reducing interest rates while the economy remained strong. He remarked on the spectacular earnings reported by some major banks on Friday, emphasizing that this positive news is particularly impactful now, as opposed to previous instances when the Fed was tightening, causing good news to go largely unnoticed. Cramer believes that with the Fed now supportive of the market, there is potential for more favorable times ahead.
Looking to Monday, Cramer predicted that the focus will shift away from earnings reports due to other significant developments over the weekend. He mentioned the anticipated unveiling of a Chinese stimulus package and noted that although the rally in China has stalled, it could regain momentum if the Chinese government injects substantial funds into real estate and the stock market.
“Now, on Monday, we won’t be focused on earnings. There’s a lot of other stuff happening over the weekend. For instance, I think we’ll be parsing the Chinese stimulus package that’s going to be unveiled. The China rally is stalled, but it can get rolling again if the Chinese Communist Party keeps throwing tens of billions of dollars for the stimulus at real estate, at the stock market.”
Cramer warned that the financial sector will face a significant test on Tuesday, as different banks will be reporting their earnings. Cramer reminded investors that we are just at the beginning of one of the year’s four reporting periods, which can be chaotic and open to various interpretations.
“We’re at the beginning of one of the year’s four reporting periods,” he said. “They’re jumbled. They’re open to a lot of interpretation. They’re fast. So listen to the calls, ponder a moment, and only then should you pull the trigger.”
Our Methodology
For this article, we compiled a list of 14 stocks that are slated to release earnings this week and were discussed by Cramer during his episode of Mad Money on October 11. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a financial advisor giving advice to a customer, demonstrating the importance of consumer and wealth management.
The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 68
Mad Money’s host recently 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.”
The Goldman Sachs Group, Inc. (NYSE:GS) is a prominent financial institution specializing in a range of financial services, with a core focus on investment banking and wealth management. Renowned for its expertise in investment banking, the company has established itself as a leader in areas such as equity and debt underwriting, advisory services for mergers and acquisitions, and comprehensive wealth management solutions. The firm operates a significant trading desk, engaging in lending activities to corporate clients while also investing its own capital across equity and debt markets. Furthermore, it manages trillions of dollars in assets on behalf of its clients, reflecting its extensive reach in the financial sector.
In asset and wealth management, Goldman Sachs (NYSE:GS) reported strong growth in its management and advisory fees, with a record of $3.2 billion achieved in the second quarter alone. Its Assets Under Supervision reached an all-time high of $2.9 trillion, while total client assets within wealth management increased to approximately $1.5 trillion.
Goldman Sachs (NYSE:GS) recorded a margin of 23% for the first half of the year. The company also made significant strides in alternative investments, successfully raising $36 billion year-to-date. It includes the completion of several key fund closings, with $20 billion allocated to private credit strategies and around $10 billion directed toward real estate investments.
With a strong pipeline, the company expects to surpass $50 billion in fundraising for alternatives this year, a goal supported by unexpectedly high fundraising activity in the first half. Additionally, the company made an announcement regarding its dividend policy, increasing the quarterly dividend by 9%. Since early 2019, it has tripled its quarterly dividend, now standing at $3 per share.
Overall GS ranks 10th on our list of the stocks Jim Cramer is talking about before earnings. While we acknowledge the potential of GS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.
