Jim Cramer Reacts to the Surprise Market Surge and Highlights 8 Key Stocks

3. Goldman Sachs Group Inc. (NYSE:GS)

Number of Hedge Fund Holders: 81

While previewing upcoming bank earnings, Jim Cramer analyzed Goldman Sachs Group Inc. (NYSE:GS), suggesting that its current valuation may already reflect investor pessimism. Here are his remarks:

“Well, the only reason I mention is Goldman’s about to report, okay? And David, Goldman is at the fulcrum of everything. It’s down 20 today. It was up big yesterday. It sells at 11 times earnings. And what I’m getting at is that maybe at 11 times earnings, if they miss the number, it doesn’t go down that much. […] So maybe instead of doing 12, maybe they do 11 and the stock doesn’t get hit.  Because it’s selling at nine times next year’s earnings. So this is what I’m talking about. Right now, at this moment, people are recalibrating and maybe they say, you know what, I knew Goldman was going to be bad. It was bad. Okay, next.”