Goldman Sachs (GS) stock closed higher Monday after the investment banking giant beat expectations on the top- and bottom-lines for its second quarter and reiterated news of its quarterly dividend hike.
In the second quarter ended June 30, Goldman's net revenue increased 17% year-over-year to $12.7 billion, driven by a 27% rise in its Asset & Wealth Management segment to $3.9 billion. Its earnings per share (EPS) jumped to $8.62 from $3.08 the year-ago period.
"We are pleased with our solid second quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth in both Global Banking & Markets and Asset & Wealth Management,” Goldman Sachs CEO David Solomon said in a statement. “Our One Goldman Sachs operating approach is allowing us to bring the whole firm to our clients, deepening our relationships and serving them in an improving, but complex environment."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $12.5 billion and earnings of $8.34 per share, according to CNBC.
Goldman also increased its quarterly dividend by 9.1% to $3.00 per share, which it first indicated it would do on June 28 following the release of the Federal Reserve's stress test results. The first dividend at this increased rate will come on September 27 to shareholders of record on August 30.
Is Goldman Sachs stock a buy, sell or hold?
Goldman Sachs is one of the best Dow Jones stocks this year, up more than 26% on a total return basis (price change plus dividends). Unsurprisingly, Wall Street is bullish toward the financial stock. According to S&P Global Market Intelligence, the consensus recommendation among analysts it tracks is a Buy.
However, analysts' price targets have struggled to keep up with the stock's run higher. Currently, the average price target is $469.86, representing a discount of nearly 5% to current levels.
Financial services firm BofA Global Research is one of the more bullish outfits on GS stock with a Buy rating and $563 price target, citing its longer-term earnings-per-share expectations.
BofA's $563 price target represents implied upside of more than 14% to current levels.
Related Content
- Citigroup Reports Q2 Earnings: Buy, Sell or Hold?
- Earnings Calendar and Analysis for This Week
- Analysts' Top S&P 500 Stocks to Buy Now
-
The Retirement 'Rule of $1 More'The 'Rule of $1 More' explains how to plan for critical retirement thresholds. Because "you don't want to step off a cliff just because of $1 more."
-
Recent Market Volatility Offers Valuable Lessons for InvestorsStocks will always rise and fall, but strategic investors can benefit through dollar-cost averaging, rebalancing in down markets and taking the long view.
-
Recent Market Volatility Offers Valuable Lessons for Investors
Stocks will always rise and fall, but strategic investors can benefit through dollar-cost averaging, rebalancing in down markets and taking the long view.
-
Retiring Early? This Strategy Cuts Your Income Tax to ZeroWhen retiring early, married couples can use this little-known (and legitimate) strategy to take a six-figure income every year — tax-free.
-
Ditch the Golf Shoes: Your Retirement Needs a Side GigA side gig in retirement can help combat boredom, loneliness and the threat of inflation eroding your savings. And the earlier you start planning, the better.
-
The Best Aerospace and Defense ETFs to BuyThe best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet SpotConverting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.
-
A Financial Expert's Three Steps to Becoming Debt-Free (Even in This Economy)If debt has you spiraling, now is the time to take a few common-sense steps to help knock it down and get it under control.
-
I'm an Insurance Expert: This Is How Your Insurance Protects You While You're on VacationHere are three key things to consider about your insurance (auto, property and health) when traveling within the U.S., including coverage for rental cars, personal belongings and medical emergencies.
-
Stock Market Today: It's 'Most Sectors Go' Ahead of Independence DayThe resilience trade continues to work, even for sectors and stocks with specific uncertainties.
