The Goldman Sachs Group, Inc.: Anticipation of a technical correction
Published on 02/01/2019
at 03:11 pm GMT
Share
SELL
Target price hit
Entry price
Target
Stop-loss
Potential
US$198.26
US$190.5
US$204.1
+3.91%
The chart of shares in Goldman Sachs Group suggests a correction over the short term. The timing to benefit from a likely reversal appears good.
Strengths
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Historically, the company has been releasing figures that are above expectations.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at USD 207.19.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● Below the resistance at 207.19 USD, the stock shows a negative configuration when looking looking at the weekly chart.
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The Goldman Sachs Group, Inc. specializes in investment services. Revenues break down by activity as follows:
- investment banking (65.3%): advice on mergers and acquisitions, equity transactions, etc.;
- asset and wealth management (30.2%). The Group is also developing a business of acquiring holdings in fast-growing technology companies;
- financial services (4.5%).
Revenues are distributed geographically as follows: Americas (64.4%), Europe/Middle East/Africa (22.9%) and Asia (12.7%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
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Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
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Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
