The Goldman Sachs Group, Inc., the investment banking giant and component of the Dow Jones Industrial Average, reported better-than-expected earnings before the opening bell on Wednesday, Jan. 17. The stock reached as high as $262.50 in pre-market trading, but gains could not be sustained. Investment banking activities were a plus, but a difficult trading environment for bonds and foreign exchange disappointed.
The stock closed last Tuesday at $258.46, up 1.5% year to date and in bull market territory at 23.3% above its 52-week low of $209.62 set on May 31. The stock set its 52-week intraday high of $262.14 on Dec. 22. Thus, the stock lags the Dow 30 gain of 4.3% year to date. Goldman Sachs Bank ended the third quarter of 2017 with $158 billion of assets on its balance sheet, and its real estate loan exposures are well managed versus risk-based capital. (See also: How Goldman Sachs Makes Its Money.)
Goldman Sachs, the benchmark for investment banking, is reasonably priced with a P/E ratio of 13.46 and a dividend yield of 1.16%. …read more
Read more here: Goldman Stock Slumps on Disappointing Trading Results