Oppenheimer’s Favorite Stocks For Next 12 Months: Top 32 Stock Picks

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

Share Price Upside: -9%

Number of Hedge Fund Investors In Q2 2024: 68

Average Analyst Share Price Target: $465.1

The Goldman Sachs Group, Inc. (NYSE:GS) has become one of the most troubled investment banks on Wall Street, particularly due to the lackluster performance of its retail business and struggles in a high interest rate era. However, 2024 has been a stable year for the bank, with The Goldman Sachs Group, Inc. (NYSE:GS)’s shares having gained 53% since April 2023. This strength follows the bank’s decision to close its consumer banking business arm, after the ill fated attempt to diversify its business. Since it’s a key player in the investment banking and mergers and acquisitions market, The Goldman Sachs Group, Inc. (NYSE:GS) benefits from low interest rates too as a looser monetary policy environment increases the number of deals. Oppenheimer believes that The Goldman Sachs Group, Inc. (NYSE:GS) “has a strong franchise and there are multiple revenue, cost, and capital optimization strategies that can be implemented, but the market is still valuing the stock as though the returns will remain unchanged indefinitely.”

Ariel Investments mentioned The Goldman Sachs Group, Inc. (NYSE:GS) in its Q4 2023 investor letter. Here is what the firm said:

“Global investment bank, Goldman Sachs Group, Inc. (GS), also increased in the period on solid earnings results. The top- line came in strong led by elevated financing activity and an improvement in advisory revenues, despite weak transaction volumes within the investment banking segment. Should conditions remain conducive, management remains cautiously optimistic the business will experience continued recovery in both capital markets and strategy activity. Meanwhile, GS continues to successfully execute on its strategic initiatives to improve the overall return of the company. It is right sizing headcount and narrowing its ambitions in consumer strategy through divestitures and an enhanced focus on driving profitability in Platform Solutions by 2025. With potential regulatory capital constraints from B3E, GS noted it will reign in buybacks over the short-term but maintain its dividend. Looking ahead, we continue to view the near and long-term outlook for Goldman as attractive at current levels, given favorable business trends, continued positive momentum on strategic initiatives and active expense/capital management programs.”