I'm a fan of big banks in 2021, and Goldman Sachs is near the top of the list. In Q4, the investment banking giant demonstrated how strong its operations and earnings-generating businesses are. Below, I breakdown some of Goldman Sach's Q4 earnings numbers, and I also provide Tickeron's Artificial Intelligence-generated analysis for traders and investors.
- Earnings per Share: $12.08/sh vs. $6.99 exp
- Revenues: $11.7B vs. $9.65B exp
- Adj. Return on Equity 21.1% v 17.5% q/q
- Avg Daily VAR $84M v $91M q/q
- Tier 1 Capital Ratio under Basel III 14.7% v 14.5% q/q
- Book value per share $236.15 v $229.49 q/q
- Total loans $116B v $112B q/q
- Provision for credit losses $293M v $278M q/q; allowance for credit losses $4.43B v $4.33B prior
Segment Revenues:
- Net investment banking Rev $2.61B, +33% q/q, +27% y/y
- Global Markets $4.27B, -6% q/q, +23% y/y (Fixed income, Currency and Commodities (FICC) Client Execution $1.88B , +6% y/y)
- Asset Management Rev $3.21B +16% q/q, +7% y/y.
- Consumer & Wealth Management $1.65B, +11% q/q, +17% y/y
Time to buy?
GS saw its Momentum Indicator move above the 0 level on October 09, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 78 similar instances where the indicator turned positive. In of the 78 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for GS just turned positive on October 08, 2024. Looking at past instances where GS's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
GS moved above its 50-day moving average on October 04, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for GS crossed bullishly above the 50-day moving average on September 26, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GS advanced for three days, in of 331 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 261 cases where GS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GS broke above its upper Bollinger Band on October 11, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. GS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.270) is normal, around the industry mean (5.669). P/E Ratio (18.081) is within average values for comparable stocks, (33.940). Projected Growth (PEG Ratio) (3.284) is also within normal values, averaging (2.610). Dividend Yield (0.026) settles around the average of (0.030) among similar stocks. P/S Ratio (3.091) is also within normal values, averaging (110.541).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of investment banking, securities and asset management services
Industry InvestmentBanksBrokers