The Party At Goldman Sachs Since 2022 May Be Ending

Goldman Sachs is rated a Sell, with a 12-month bearish outlook due to severe overvaluation and unsustainable investor sentiment. Read more on GS stock here.

Back in June 2022 here, I picked The Goldman Sachs Group, Inc. (GS) as my favorite buy-and-hold bank or brokerage idea. After a terrific 4-year run delivering a total return of +285%, my view is now the opposite. I am quite Summary - Goldman Sachs is downgraded to Sell, with a 12-month bearish outlook due to severe overvaluation and unsustainable investor sentiment.

- GS trades at a trailing P/E of 19.3x and a price-to-tangible book value of 3.1x, the highest readings of this investment cycle, signaling elevated risk. - Technical momentum indicators and insider selling activity reveal waning buying interest and heightened management concern. - Business growth is projected to peak in 2026, while a U.S. recession or AI bust could trigger a 30–50% share price decline.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha).

I have no business relationship with any company whose stock is mentioned in this article. I am short the financial sector including a small weighting in Goldman Sachs through XLF. All opinions expressed herein are not investment recommendations and are not meant to be relied upon in investment decisions.

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author is not acting in an investment advisor capacity and is not a registered investment advisor. The author recommends investors consult a qualified investment advisor before making any trade. Any projections, market outlooks, or estimates herein are forward-looking statements based upon certain assumptions that should not be construed as indicative of actual events that will occur. This article is not an investment research report but an opinion written at a point in time. The author's opinions expressed herein address only a small cross-section of data related to an investment in securities mentioned. Any analysis presented is based on incomplete information and is limited in scope and accuracy. The information and data in this article are obtained from sources believed to be reliable, but their accuracy and completeness are not guaranteed. The author expressly disclaims all...

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