Our latest technical analysis of Goldman Sachs Group (NYSE:GS)

As many baby boomers are indifferent towards financial services space, it makes sense to sum up Goldman Sachs Group against current market trends. As expected, Goldman Sachs is starting to reaffirm its true potential as retail investors are becoming more and more confident in the future outlook. Lots of the inclinations of the company stock price movements has been a rough manifestation of what is happening in the market overall. The record of invariable basic indicators of the enterprise connotes a short-term price swing for retail investors of Goldman. Goldman Sachs Group is scheduled to announce its earnings tomorrow.
Published over a year ago
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Reviewed by Rifka Kats

Goldman Sachs Group's average rating is Buy from 16 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Goldman Sachs market sentiment investors' perception of the future value of Goldman. Let us look at a few aspects of Goldman technical analysis.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Goldman Sachs Group. In general, sophisticated investors focus on analyzing Goldman Sachs stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Goldman Sachs's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Goldman Sachs's intrinsic value. In addition to deriving basic predictive indicators for Goldman Sachs, many experienced traders also check how macroeconomic factors affect Goldman Sachs price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Goldman Sachs' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Goldman Sachs. Your research has to be compared to or analyzed against Goldman Sachs' peers to derive any actionable benefits. When done correctly, Goldman Sachs' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Goldman Sachs Group.

How important is Goldman Sachs's Liquidity

Goldman Sachs financial leverage refers to using borrowed capital as a funding source to finance Goldman Sachs Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Goldman Sachs financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Goldman Sachs' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Goldman Sachs' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Goldman Sachs's total debt and its cash.

Goldman Sachs Gross Profit

Goldman Sachs Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Goldman Sachs previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Goldman Sachs Gross Profit growth over the last 10 years. Please check Goldman Sachs' gross profit and other fundamental indicators for more details.

Another Deeper Perspective

The entity has a beta of 1.3132. Let's try to break down what Goldman's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Goldman Sachs will likely underperform. The beta indicator helps investors understand whether Goldman Sachs moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Goldman deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm generated the yearly revenue of 58.98 B. Reported Net Income was 21.12 B with gross profit of 52.7 B.

Will Goldman continue to spike?

Latest skewness is at -0.39. Goldman Sachs Group exhibits very low volatility with skewness of -0.39 and kurtosis of 2.09. However, we advise investors to further study Goldman Sachs Group technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Goldman Sachs' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Goldman Sachs' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Goldman Sachs Implied Volatility

Goldman Sachs' implied volatility exposes the market's sentiment of Goldman Sachs Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Goldman Sachs' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Goldman Sachs stock will not fluctuate a lot when Goldman Sachs' options are near their expiration.

Our Takeaway on Goldman Sachs Investment

While some firms in the capital markets industry are either recovering or due for a correction, Goldman Sachs may not be performing as strong as the other in terms of long-term growth potentials. While some retail investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Goldman Sachs.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Goldman Sachs Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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