The Goldman Sachs Group, Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for The Goldman Sachs Group, Inc. (GS).
Give me a comprehensive price target analysis for The Goldman Sachs Group, Inc. (GS).
Comprehensive Price Target Analysis for Goldman Sachs (GS)
Executive Summary
Goldman Sachs exhibits a solid financial position with a current trading price close to the median analyst target, suggesting a balanced outlook. The stock demonstrates resilience amid moderate valuation metrics, such as a P/E of approximately 15.8 and a P/B ratio of 1.9. The recent earnings trends and technical indicators support a cautious but optimistic outlook for short to medium-term growth, with substantial upside potential toward the high target levels over the long term.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | ~$217 billion |
| P/E (Trailing) | 15.8 |
| P/E (Forward) | 17.2 |
| Price to Book | 1.90 |
| Return on Equity | 12.7% |
| Profit Margin | 28.4% |
| Debt-to-Equity | 588.4 (high, indicating leverage) |
| Total Cash | ~$983 billion |
| Total Debt | ~$732 billion |
| Dividend Yield | 2.22% |
| Beta | 1.37 (moderately volatile) |
The valuation appears reasonable given its strong cash position, profitability margins, and market stature. The high debt-to-equity ratio warrants monitoring but is typical for investment banks leveraging financial activities.
Earnings Analysis
Recent Earnings Performance
The earnings report indicates diversified income streams with notable net income stability. Adjustments for unusual items reveal consistent profitability.
EPS Trends
| Period | EPS (Diluted) |
|---|---|
| Current | 10.91 |
| 7 Days Ago | 10.25 |
| 1 Year Ago | 45.99 (not directly comparable due to possible different reporting conventions) |
The EPS trend suggests stable quarter-over-quarter earnings growth and potential upward momentum.
EPS Revisions
Analyst sentiment shows ongoing positive revisions, with net upward changes in EPS estimates over the past month and year, indicating confidence in sustained growth.
Earnings Quality
Steady revenue and profit margins underscore earnings sustainability. The company’s diversified income and prudent expense management further support this.
Technical Analysis
| Indicator | Current Status |
|---|---|
| Price | $715.95 (near the median target) |
| 50-Day MA | ~$668 (upward trend, supports current price) |
| RSI (14) | 53.4 (neutral, indicating balanced momentum) |
| MACD | Slightly positive, indicating ongoing upward momentum |
Price action remains strong, with key support around the 50-day MA and resistance close to the high target levels.
Analyst Consensus & Price Targets
| Target | Price | Number of Opinions |
|---|---|---|
| Low | $538 | - |
| Median | $725 | 19 |
| High | $815 | - |
| Current Price | $715.95 | - |
The consensus median and current price are closely aligned, implying moderate expectations for the stock’s near-term direction.
Price Target Analysis
Support and Resistance Lines
- Low Target (Support): $538
- Median Target (Current Outlook): $725
- High Target (Potential Upside): $815
These levels are plotted for extension 30 days into the future to guide potential support and resistance zones.
Interpretation
The stock price currently sits slightly below the median target, with technical indicators suggesting continued upward rally toward the median and high targets.
Key Drivers
- Strong earnings growth and positive analyst revisions support upward movement.
- Technical momentum and valuation metrics favor cautious optimism.
- Long-term catalysts include economic recovery, interest rate environment, and strategic growth initiatives.
Risks & Opportunities
| Risks | Opportunities |
|---|---|
| High leverage risk | Strong earnings growth |
| Market volatility | Expansion into new markets and services |
| Rising interest rates impacting margin | Potential for multiple expansion |
Investment Recommendation
Hold with a medium-term perspective, targeting an appreciation toward the median to high levels over the next 12-24 months, with an expected return potential of approximately 7-15%, depending on market conditions.
Note: Monitoring technical signals and earnings progress remains vital for timely adjustments to this outlook.