Jim Cramer Talked About These 16 Stocks

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

Cramer noted that while banks like The Goldman Sachs Group, Inc. (NYSE:GS) saw rapid stock movements due to tough regulation under the Biden administration, they may benefit from looser rules under a Trump administration, potentially leading to higher dividends, buybacks, and more mergers.

“The banks, especially investment banks, these stocks had gigantic moves. Moves that would normally take weeks or even months to occur and instead they happened in a handful of hours. The banks have been pushed down for ages because the Democrats have tough, relentless regulators who love to go after the industry. Hey, you may hate the industry, you might want that. You may love it and say… enough. The regulators have crushed their earnings power and their dividend giving and their buyback ability. That, in turn, really obliterated the price-earnings multiple of the cheapest stocks in the entire market. Now though, the banks could be unfettered, they might be able to merge again, reward investors with much higher dividends, and buyback even more stock.

More importantly, the investment banks can advise on many more mergers and there will be many more mergers because the regulators will look the other way and we’ll get more IPOs too. It’s hard to convey how much antipathy there was between bankers and the Biden administration, they were oil and water. That’s it. The banks have now run a lot. You got my blessing though, to buy them… For the Charitable Trust, we actually sold some of our shares. These became some of our largest positions ’cause they went up so much… Overall, the group is still cheap. To go parabolic, it will come down, you can buy.”

Goldman Sachs (NYSE:GS) is a leading global financial services firm known for its expertise in investment banking, wealth management, and a range of other financial services. In the third quarter, it returned $2 billion to its common shareholders. This amount included dividends totaling $978 million and stock repurchases of $1 billion. On October 11, the firm announced a dividend of $3.00 per common share, set to be paid on December 30, to shareholders of record as of December 2.

The financial environment has played a significant role in Goldman Sachs’ (NYSE:GS) recent performance. In recent years, the Federal Reserve’s interest rate hikes had a chilling effect on M&A and IPO activity, making it a challenging period for many financial institutions. However, as interest rates have begun to decline, the economic conditions have started to improve for firms like Goldman Sachs.

Advisory fees surged by 27% in the third quarter compared to the previous one. While the IPO market remains slow, the bank is positioning itself for a potential rebound when market conditions fully stabilize.