Is GS a good stock to buy?
We came across a bearish thesis on The Goldman Sachs Group, Inc. on r/investing_discussion by Variant_Invest
In this article, we will summarize the bears’ thesis on GS. The Goldman Sachs Group, Inc.’s share was trading at $1,032.01 as of June 9th. GS’s trailing and forward P/E were 18.85 and 17.54 respectively according to Yahoo Finance.
Nonwarit/ The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals in the Americas and internationally. GS is being framed as a mid-teens ROE compounder, but the underlying earnings power appears significantly weaker once non-recurring items and capital actions are adjusted for. The reported mid-teens return on equity is inflated by cyclical mark-to-market gains and periodic reserve releases, both of which are inherently volatile and not representative of sustainable fee-based earnings. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential At the same time, aggressive share repurchases have mechanically supported headline profitability by reducing equity, further masking the softness in core operating performance.