The Zacks Analyst Blog shows the Goldman Sachs, JPmorgan and Morgan Stanley

Chicago, IL – May 7, 2025 – Zacks.com announces the list of shares presented in the analyst blog. Every day, the analysts of Zacks Equity Research discuss the latest news and events that affect stocks and financial markets. The shares recently presented on the blog include: The Goldman Sachs Group, Inc. GS, JPMorgan JPM and Morgan Stanleys MS.

Here are highlights from the analyst blog on Tuesday:

The Goldman Sachs Group, Inc. In the past three months, the shares have fallen by 15% compared to the decline in the industry. The stock was accompanied by escalating trade war concerns, with the tariffs to trigger fears from high inflation and a possible global economic slowdown.

After the wider market trend, the Peer of GS, JPmorgan And Morgan StanleyThe shares fell 8% and 14.6% in the same period.

In view of the latest withdrawal at the GS share price, many investors have to think about whether the stock is worth it for the moment. Let us go deeper and analyze the factors.

For 2025, a robust revival of the activities for the fusion and acquisition (M&A) was expected, which has been raised by a potentially business-friendly Trump management, the expectations of regulatory rollbacks and demand. So far, however, reality has been more complicated.

The schedule for a solid rebound in M&S has shifted to the second half of 2025 due to Trump tariff plans, which led to an extreme market volatility. In view of the increasing inflation pressure, a slowdown/recession in the US economy is expected. In the middle of such a backdrop, do their M&A plans, even though they stabilize interest rates and have considerable investments.

In view of the market uncertainty and slowing down the M&A activities, the IB revenue from Goldman decreased by 8% in the first quarter of 2025 compared to the previous year. On the contrary, his colleagues, JPmorgan and the IB fees of Morgan Stanley, rose by 12% and 7.7% in the first quarter.

Goldman's leading position in dealing activities, however, indicate that the customer's trust is permanent. This, together with an increased IB deficit, will probably be converted into higher IB revenue as soon as the operational background is improved, which gives Goldman a strategic advantage over peers.

GS tries to leave its non-core consumer banking business and concentrate on areas in which there is a competitive advantage, IB, trade as well as asset and asset management (AWM).

Last November, Goldman received a proposal from Apple to end their consumer banking partnership according to the Wall Street Journal report. According to a Reuters report in January 2025, the collaboration can end before the contract has expired in 2030. The move is expected to affect two consumer bank products that Apple is currently offering – Apple Card and Apple savings account.

In 2024 Goldman completed a contract for the transfer of his GM credit card business to Barclay and completed the sale of Greensky, his loans for home improvement. In 2023, the company sold its personal financial management department.

These steps show a well thought -out exit from consumer financing, so that Goldman can re -assign capital and attention to higher margins, more scalable companies.

This strategic shift benefits the AWM division, which now plays a crucial role in the company's long-term growth. AWM is expanding into the sources of income subject to fee to compensate for the volatility of the IB business. As of March 31, 2025, AWM managed more than $ 3.2 trillion in assets under supervision and has a strong dynamic in alternative investments and tailor-made asset solutions for ultra-high network values.

In the first quarter of 2025, Goldman reported considerable net inflows to his asset management platform and provided solid references to the increasing market traction and the trust of the customer of the segment.

GS retains a strong balance, whereby the capital rates of Tier 1 are far above the regulatory requirements. This financial strength enables him to return capital to shareholders through return purchases and a healthy dividend yield (2.14%).

As of March 31, 2025, the bar and cash equivalent was $ 167 billion and short-term loans $ 71 billion.

In July 2024, the company increased its regular share dividend by 9.1% to $ 3 per share. In the past five years, it has hiked four dividends with an annualized growth rate of 23.6%. The distribution rate is currently 28% of the profit.

In the meantime, the Peer JPmorgan of GS has increased its dividend five times in the past five years with a distribution rate of 27%. Morgan Stanley has increased his dividend four times in the past five years and has a distribution rate of 43%.

Goldman also has a share buyback plan. In the first quarter of 2025, the Board of Directors approved a share buyback program in which additional returns of up to 40 billion US dollars were approved. In February 2023, she announced a share buyback program in which back countries were approved by ordinary shares of up to 30 billion US dollars without expiry of the expiry date. At the end of the first quarter, GS worth 43.6 billion US dollars worth 43.6 billion US dollars worth 43.6 billion US dollars worth $ 43.6 billion, which are available as part of the approval.

Although the IB business prospects of GS appear uncertain at short notice, the company is well positioned for long-term growth. The leading position in IB and trade in combination with a diversified business model and global presence offers a strong competitive advantage. His strong liquidity position supports capital distribution activities.

With regard to the evaluation, the GS also looks attractive. The share is traded at a forward price/profit (P/E) of 12.06x compared to the industry average of 12.88x. Goldman also acts with a discount compared to his colleagues Jpmorgan and Morgan Stanley. JPM and MS P/E MultiPles currently have 13.59x or 13.57x.

Despite the weakness in the IB business, Goldman will probably register for the previous year in 2025 and 2026. This reflects the company's corporate diversification efforts.

In view of the strong foundations, investors can consider capturing Goldman's shares to achieve robust returns. The company now runs a Zacks rank 3 (Hold). You can see The full list of today's Zacks #1 rank (Strong Buy) palace here.

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The Goldman Sachs Group, Inc. (GS): Report on free stock analysis

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