Jim Cramer’s Game Plan: 12 Stocks in Focus This Week

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

Number of Hedge Fund Holders: 72

Cramer expressed optimism about banks like The Goldman Sachs Group, Inc. (NYSE:GS) reporting their earnings this week.

“On Wednesday, we’re gonna hear from JPMorgan, Goldman Sachs, Wells Fargo, and Citigroup. I think they’re all gonna be pretty darn good. Plus, given the environment has improved for mergers and acquisitions, as we’ve seen already this year, we gotta have some excellent forecast. I like these stocks and they’re well off their highs with very low price-to-earnings multiples. Could it be a real opportunity? I think so. We’ve been buying a bunch of them for the Charitable Trust because a robust economy often produces the best results for these companies. Regardless of the bond market or the Fed. We have less, fewer credit problems.”

Goldman Sachs (NYSE:GS) is a prominent global financial services firm, recognized for its expertise in investment banking, wealth management, and other financial services. As of the end of the third quarter of 2024, the company reported deposits totaling $445 billion. In the first half of 2024, it achieved a margin of 23%. For the full year, the company expects its fundraising efforts to surpass $60 billion, driven by ongoing demand across various asset classes.

The company is also on track to meet its $10 billion target for management and other fees in 2024. In the third quarter of 2024, its Global Banking and Markets division remained a top advisor in mergers and acquisitions (M&A) and a key player in global risk management. As demand for committed acquisition financing has increased, the company anticipates this trend to continue with the rising volume of M&A activity.

According to Stephan Feldgoise and Mark Sorrell, co-heads of Goldman Sachs’ (NYSE:GS) Global Mergers and Acquisitions, several factors have contributed to a surge in M&A activity in 2024. Despite market volatility stemming from global elections, M&A activity rose by approximately 10% and is expected to see similar growth in 2025. Private equity firms are deploying capital at rates closer to historical averages, and Goldman Sachs remains confident about the long-term prospects for M&A, regardless of geopolitical or regulatory challenges.