Goldman Sachs (GS) stock jumped more than 3% at Tuesday's open after the investment banking giant disclosed its third-quarter results, but was last seen in negative territory.
In the quarter ended September 30, Goldman's net revenue increased 7.5% year-over-year to $12.7 billion, led by a 16.2% surge in revenue in its Asset & Wealth Management segment to $3.8 billion. The company also said earnings per share (EPS) were up 53.6% from the year-ago period to $8.40.
"Our performance demonstrates the strength of our world-class franchise in an improving operating environment," said Goldman Sachs CEO David Solomon in a statement. "We continue to lean into our strengths – exceptional talent, execution capabilities and risk management expertise – allowing us to effectively serve our clients against a complex backdrop and deliver for shareholders."
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 crushed analysts expectations. Wall Street was anticipating revenue of $11.8 billion and earnings of $6.89 per share, according to Yahoo Finance.
Goldman also proudly noted that its Assets Under Supervision (AUS) reached a record $3.1 trillion, an increase of 15.8% over the year-ago period.
Is Goldman Sachs stock a buy, sell or hold?
Goldman Sachs has been one of the best Dow Jones stocks on the price charts this year, up 38.1% on a total return basis (price change plus dividends) through the October 14 close. Unsurprisingly, Wall Street is very bullish on 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 outperformance in 2024. Currently, the average price target on GS is $526.63, which is a discount to where the blue chip stock is trading at the time of this writing. Price-target hikes could come down the pike if shares keep climbing.
"Goldman Sachs is poised for a 2024 recovery in investment banking from the market trough in 2023, which would benefit GS as the global leader," wrote CFRA Research analyst Kenneth Leon in an October 4 note. "A revamped strategy to focus on core businesses and drive more durable, recurring fee revenue is underway in Asset & Wealth Management."
Leon went on to note that his firm sees Goldman Sachs benefitting from an upturn in transaction fee activities and private equity funds exiting investments through initial public offerings.
Related content
- Earnings Calendar and Analysis for This Week
- UnitedHealth Stock Leads Dow Lower After Earnings: What to Know
- Analysts' Top S&P 500 Stocks to Buy Now
-
2026 Disney Dining Plan Returns: Free Dining for Kids & Resort BenefitsPlan your 2026 Walt Disney World vacation now. Learn about the returning Disney Dining Plan, how kids aged three to nine eat free, and the exclusive benefits of staying at a Disney Resort hotel.
-
How Can Investors Profit From AI's Energy Use?Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
-
How Can Investors Profit From AI's Energy Use?
Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
-
Can Trump Fire Powell? A Supreme Court Case Could DecidePresidential posts threaten to overwhelm decades of precedent and tradition, whatever the nine justices decide.
-
What Are AI Agents and What Can They Do for You?AI agents promise to be the next big thing in artificial intelligence, but what exactly do they do?
-
Should You Buy an iPhone Now Before Tariffs Hit?Looming tariffs can make an iPhone purchase seem urgent. Here's what to do if you need another phone but want to save money.
-
SRI Redefined: Going Beyond Socially Responsible InvestingNow that climate change has progressed to a changed climate, sustainable investing needs to evolve to address new demands of resilience and innovation.
-
Here's When a Lack of Credit Card Debt Can Cause You ProblemsUsually, getting a new credit card can be difficult if you have too much card debt, but this bank customer ran into an issue because he had no debt at all.
-
33 Stocks That Could Rally 50% or More This YearAnalysts say these S&P 500 stocks have at least 50% price upside over the next year or so.
-
Stock Market Today: Dow Drops 971 Points as Powell Pressure Ramps UpPresident Trump is increasing his attacks against Jerome Powell, insisting the Fed chair cut interest rates.
