Jim Cramer Recently Put These 10 Stocks Under Spotlight

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

Number of Hedge Fund Holders: 81

Mentioning that the stock is up quite a bit, a caller asked if they should sell The Goldman Sachs Group, Inc. (NYSE:GS) and take profits or do nothing. Here’s what Cramer said in response:

“Goldman Sachs sell? I want you to buy more Goldman Sachs. We’re about to have a wave of mergers you wouldn’t believe and a new wave of IPOs and people don’t seem to realize it. I seem to be the only person who realizes it. You want to buy more Goldman right now, like the club.”

Goldman Sachs (NYSE:GS) is a financial services company known for its proficiency in investment banking, wealth management, and various other financial offerings. Almost 2 weeks ago, Cramer extensively commented on the company as he said:

“The plummeting stock market means fewer IPOs, which is another big source of business for Goldman. So that’s why the stock’s come down 22% in the past few weeks… I think much of the risk may already been baked, not all of it, baked into the stock price. When Goldman peaked last month, it was trading at 14.5 times this year’s earning estimates.  Now it’s trading at roughly 11.5 times this year’s estimate although the estimate’s probably come down.

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.”