Goldman Sachs Group Inc
Goldman Sachs Lists Its Semiconductor Stocks: Should You Buy?
When Is Goldman Sachs Launching Its BNPL Platform With Apple?
Goldman Sachs Picks Renewable Energy Stocks to Buy Now
Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
Goldman Sachs CEO David M. Solomon Makes a Mint Despite Controversies
Goldman Sachs Puts Tesla and VW At the Top of EV Stock Picks
Morgan Stanley Investment Management Thrives in 2Q15
Morgan Stanley’s (MS) Investment Management segment reported a 7% increase, bringing total revenues to $751 billion compared to $705 billion in 2Q14.
A Look at Frontier’s Growth and Challenges in 2017
Frontier’s outlook for 2017 Frontier Communications (FTR) expects moderate improvements in its customer and revenue trends, cost containment, and synergy realization in 2017. It expects synergy realization from the integration of AT&T’s (T) and Verizon’s (VZ) wireline businesses in Connecticut and CTF (California, Texas, and Florida) markets. Frontier completed the acquisition of AT&T’s and Verizon’s […]
Morgan Stanley’s Strong Revenue Model
Morgan Stanley charges fixed fees and performance fees for asset management services, products and services, and administration of accounts.
After a Lackluster 2Q15, Return on Equity Will Likely Improve
Wall Street analysts expect Goldman Sachs to post return on equity (or ROE) of 11.5% in 3Q15. In 3Q14, ROE for Goldman Sachs was 11.8%.
Will a Partnership with GE Improve BHI’s Returns?
Between December 2014 and December 2016, Baker Hughes (BHI) stock hit its peak in April 2015. It troughed at ~$39 in January 2016.
GS Cuts More Jobs than It Did during the 2008 Financial Crisis
Goldman Sachs has been cutting costs in recent quarters. In 2016, 2,600 people may have lost their jobs at GS—the highest number since the financial crisis.
Emerging Market Equities See Valuations Rise on Fundamentals
Valuations rose by 3.10% in the week ended September 11, 2015. The rise was mainly due to buying in India’s equities on higher industrial production and low inflation.
Lack of Rate Hike in September Leads US Stocks Down
The US Federal Reserve met on September 16 and 17 in one of the most anticipated monetary policy meetings in recent memory.
High-Grade Bond Yields Rose as Spreads Touched Their Lowest Level
Last week, high-grade bond yields rose after upbeat US inflation and retail sales data raised the possibility of a rate hike by the year’s end.
Factors That Will Drive Goldman Sachs’ Earnings in 2016
Goldman Sachs derives 16% of its revenues from the investing and lending business. So far, 2016 has been a rough year for the financial sector.
Did Banks’ Earnings Grow in 4Q15?
The Federal Deposit Insurance Corporation’s quarterly report on the health of the US banking industry said that 4Q15 bank earnings rose 11.9% year-over-year.
The Redbook shows strength in retail sales due to a late Easter
The Redbook showed some strength in same-store sales during the April 19 week by recording a year-on-year rate of +3.7%.
Bernstein: Tax Reform Is Bullish for the Equity Market
Tax reform On December 2, 2017, the Senate passed Donald Trump’s tax reform bill, and on December 20, 2017, the House of Representatives passed the bill. Afterwards, the S&P 500 (SPX-INDEX) (SPY) rose to a record high. Richard Bernstein on tax reform In an interview with CNBC, prominent investor Richard Bernstein stated that tax reform could be very helpful for […]
Why Investors Are Optimistic about Tech Stocks
The tech sector’s competitive edge So far in this series, we’ve discussed the potential effects of Trump’s proposed tax reform on prominent tech stocks such as Apple (AAPL), Microsoft (MSFT), IBM (IBM), and Amazon (AMZN). Tech companies continue to be preferred by investors due to their proprietary technological expertise and large cash balances. Their technical […]
Turn to Financials and Healthcare When Fears of Rate Hike Loom
With classic safe havens providing little protection, turn to financials and healthcare sectors for opportunities. Healthcare stocks usually hold up well in the run-up to a rate hike.
Bank of America’s Continued Efficiency Maintains Margins
Operating margins In 3Q17, Bank of America’s (BAC) non-interest expenses fell sequentially and YoY (year-over-year), reflecting strong operating efficiency. This fall was partially offset by continued investments in technology. The bank’s expenses fell to $13.1 billion in 3Q17, compared with $13.5 billion in 3Q16 and $13.7 billion in 2Q17. Commercial banks (XLF) are focusing on reducing operating spending, targeting huge investments in technology […]
How will the Federal Reserve go about policy normalization?
Monetary policy normalization refers to two aspects: the federal funds rate and the Federal Reserve’s balance sheet.
Why Goldman and Macquarie Don’t Think Iron Ore Rally Will Last
Goldman Sachs (GS) has warned the Markets that iron ore prices will slump below $40 per ton as supply growth outpaces demand.
The Facts on 3M’s 3Q17 Dividend
On September 12, 3M will pay a dividend of ~$1.18 per share. Investors holding the stock on or before the record date of August 25, 2017, are eligible.
Must-know: Determining a bank’s value
The first challenge is that banks are highly regulated and any change in regulations has a huge impact on the valuation of a bank—the second challenge is that it’s difficult to determine cash flow for a bank because both debt and reinvestment are difficult to calculate.
Does Citigroup Look Attractive at Its Current Valuations?
Currently, Citigroup trades at a discount of 40% to its book value. It trades cheaper than peers such as JPMorgan Chase, Wells Fargo, and Goldman Sachs.
Institutional Asset Managers Liquidate Exposure to Brazil ETFs
The 13F filings of major institutional asset managers for the second quarter of 2015 offer a gloomy picture for Brazil.
How Rate Hikes and Tax Rate Cuts Could Play Out for Bankers
The Fed is targeting one last rate hike in December 2017 to bring the federal funds rate from 1.25% to 1.50%.
Why Analysts Have Mixed Views on Iron Ore Prices
Goldman Sachs (GS) is notably still quite bearish on iron ore. The bank cited the recent string of shipment data from Australia to support its view.
EU Equities Decline on Greece’s Woes in Week Ended May 29
EU equities outperformed other major markets in 2015 due to quantitative easing announced by the European Central Bank, a weaker currency, and rising exports.
Did the Fed Really Hint About a Negative Interest Rate?
A negative interest rate policy (or NIRP) may still be a far-fetched idea in the United States, but the Federal Reserve wants banks to prepare for it.
Why Investors Are Watching Apple Stock Closely Today
On April 9, the shares of the US tech giant Apple (AAPL) were trading at their highest level in the last 21 weeks.
What Went Wrong with Snapchat Stock?
Social media Snapchat’s (SNAP) shares fell 18.5% in the week ended March 10 to close at $22.07. But the stock rose 44% on March 2, the day of its IPO.
Must-know: Putting the price–to-book value ratio in perspective
We explored the most commonly used valuation metric for financial companies—the price-book value. We also understood the relation between price-book value and return on equity.
Banks That Look Riskier in the Brexit Aftermath
Banks with significant exposure to the United Kingdom and the European Union are the riskiest investments in a post-Brexit environment.
Goldman Sachs Favors Chevron Compared to ExxonMobil
Chevron and ExxonMobil stocks have provided almost flat returns in the current quarter. As a result, Goldman Sachs favors Chevron over ExxonMobil.
Berkshire Hathaway Increased Its Stake in Teva Again
Teva stock has gained ~27.0% year-to-date on the back of the positive news that included product launches and study data.
How the Fed funds rates and inflation affect interest rates
As the economy expands creating inflationary pressures, the Fed raises the Fed funds rate to control inflation.
Understanding Frontier’s Recent Bounce
Shares of Frontier Communications (FTR) rose 20.7% last week (ended May 19, 2017). The stock has been in a downward spiral for the past 12 months.
Should You Include Buckeye Partners in Your Portfolio?
Buckeye Partners’ (BPL) outlook looks positive from a long-term investment standpoint. At a broader level, ~54% of analysts rate Buckeye Partners as “hold.”
Seaborne Iron Ore Prices Look Firm, Supporting Cliffs
For the first time in two years, in November, iron ore prices crossed the $80 per ton level, and YTD gains for the steel-making commodity have reached 82%.
BHI, GS, and CSL Capital to Create an OFS Newco
On November 30, Baker Hughes, CSL Capital Management, and West Street Energy Partners have agreed to form a land-based pressure pumping company BJ Services.
What Do Analysts Forecast for ExxonMobil?
Approximately 35% of analysts tracking ExxonMobil rate it a “buy” or some equivalent. Approximately 54% rate the company a “hold” or an equivalent, while 11% of the analysts recommend a “sell.”
Must-know: Analyzing the 6-month Treasury bills auction
The share of primary dealer bids rose slightly. An increase in the percentage of primary dealer bids is a sign of weaker fundamental market demand.
Morgan Stanley’s Expense Cuts Are Key Part of Recovery
Morgan Stanley’s 2Q16 earnings beat analysts’ estimates, as the bank reported considerably lower legal expenses.
Buffett’s Berkshire Hathaway opens a position in Liberty Global
International cable company Liberty Global (LBTYA) is a new 0.25% position initiated by Berkshire Hathaway in 4Q. Liberty Global operates in 14 countries, including 12 European countries.
Wall Street Targets for Pioneer Natural Resources
Approximately 61% of analysts rate Pioneer Natural Resources as a “buy,” ~30% rate the company a “hold,” and 9% of the analysts recommend a “sell.”
BP after Its 2Q15 Earnings: Wall Street Analysts’ Forecasts
Now let’s look at Wall Street analysts’ forecasts for BP following its 2Q15 earnings release.
Wall Street Analysts’ Recommendations on EOG Resources
It’s important to note that ~69% of analysts tracking EOG Resources rate it a “buy” or some equivalent, while ~24% rate the company a “hold.”
Morgan Stanley and Goldman have bigger bond exposure than Bank of America and Citi
Bond underwriting exposure could be risky for investment banking departments, as interest rates begin to rise and refinancing slows.
Times Change: Why the Dow Theory Is Less Applicable Today
The economic make-up of the US has changed significantly over the past century, making the Dow Theory less applicable today than it might once have been.
Twitter Makes Changes after Its Disappointing 1Q15 Earnings
Twitter’s management changes came after its disastrous 1Q15 earnings. Twitter missed its own revenue growth estimate for 1Q15 and even lowered its outlook.
How Is GoPro Enhancing Customer Experiences?
During GoPro’s 4Q16 earnings call, the firm stated that it wants to make GoPro products central to the smartphone experience.
What Goldman Sachs Recommends for Yandex
Goldman Sachs (GS) believes Yandex (YNDX) will show a strong performance in the near future.
GS and MS Agree with Bridgewater about Peak Margins
Bridgewater isn’t alone in believing that most US companies (QQQ) are experiencing peak margins.
Goldman Sachs on Facebook: Annual Sales Growth to Improve 32%
Goldman Sachs estimated that Facebook’s annual sales growth could improve by 32% from 2016 to 2019.
AMFQX Had an Overall Market Beta of Zero at the End of 4Q15
At the end of 4Q15, the fund had an overall market beta of zero compared to the beta of 0.04 of its benchmark Morningstar Managed Futures Category Average.
Investment-Grade Bond Funds Witness Inflows
Flows into investment-grade bond funds were positive for the week ending on October 14 after witnessing four consecutive weeks of outflows.
Understanding SolarCity’s Valuation Compared to Peers: Who’s Trading at a Discount?
Among the downstream solar companies, SolarCity (SCTY) has the highest EV-to-sales value of 8.70x, which is closely followed by Vivint Solar at 8.31x.
High-Grade Bond Funds See Outflows in the Week Ending April 17
Investment-grade bond yields usually follow cues from the Treasuries market. With a fall in Treasury yields, investment-grade corporate bond yields also fell.
Here’s What Just Set FireEye Ablaze
Cybersecurity firm FireEye saw the value of its shares rise 14.5% last week after investment bank Goldman Sachs upgraded the stock to a “buy.”
Morgan Stanley’s Valuation and Target Prices
Morgan Stanley (MS) is trading at a forward PE ratio of 9.6x, which is ~16% lower than its five-year average PE ratio.
Inside IBM’s New Blockchain-Based Platform
IBM (IBM) recently announced that it would be building a blockchain-based platform—the basis of bitcoin currency—for seven prominent European.
Financials Steal the Spotlight on July 15: Stellar Q2 Earnings
Financial-sector companies such as Bank of America (BAC), U.S. Bancorp (USB), and BlackRock (BLK) shared the spotlight on July 15.
Must-know: Highfields Capital exits a position in Exxon Mobil
Highfields Capital exited a position in Exxon Mobil that accounted for 1.67% of the fund’s 1Q14 (or the first quarter of 2014) portfolio.
How Have Equities Performed since the Brexit Vote?
Investors lost confidence due to the uncertainty surrounding the vote, which led to the expectation of the other member nations’ following in the United Kingdom’s footsteps.
Analyst Recommendations for CVX after Its 3Q15 Earnings
Here we’ll discuss Wall Street analyst recommendations for CVX following its 3Q15 results. Wall Street analysts provided target prices for the next 12 months.
EU Equity Valuations Improved on Strong Earnings
The MSCI Europe Index was valued at 14.9x on a one-year forward earnings basis in the week ending July 31, 2015. Valuations rose by 0.71% that week.
Understanding Goldman Sachs’s Segmental Earnings
Goldman Sachs ranked first in worldwide announced and completed mergers and acquisitions so far in 2015.
Understanding Banks’ Market and Reputational Risks
All banks face risks. Two key areas to understand are banks’ market risk and reputational risk. Here’s a summary of each type.
Understanding a Bank’s Operational and Business Risks
Banks experience operational risk in all daily bank activities, such as a check incorrectly cleared or a wrong order punched into a trading terminal.
Must-know: Highfields Capital starts a new position in Eli Lilly
Highfields Capital initiated a new position in Eli Lilly and Company that accounts for 2.13% of the fund’s 2Q14 (or second quarter of 2014) portfolio.
Why Apple’s Performance in China Is Key to Revenue Growth
In June 2016, Beijing’s (FXI) Chinese Intellectual Property Office ordered Apple (AAPL) to stop selling its iPhone 6 and iPhone 6 Plus models in China.
Why Goldman Sachs Says the FOMC’s March Policy Was Ultra-Dovish
Economists Zach Pandl and Daan Struyven from Goldman Sachs believe the March 2016 monetary policy statement released by the FOMC was one of the most dovish of this century.
What to Watch in Goldman Sachs's Q3 Earnings
Higher Provisions Weigh on Bank of America’s Q2 Results
Bank of America (NYSE:BAC) stock fell 3.1% in pre-market trading today after the company reported its second-quarter results.
Will J.P. Morgan’s Investment Banking Continue to Grow in 2017?
J.P. Morgan (JPM) advises corporates on fundraising, strategic transactions across countries, and trading activities under its corporate and investment banking division.
US Reports a Budget Deficit in May—Not a Cause for Concern
Though the US reported a budget deficit in May, its financial position was better than it had been in the previous year. Yet a budget deficit has no direct impact on companies or ETFs.
Why Oracle’s Buyback and Dividend Trend Will Likely Run into 2017
Like IBM (IBM), Oracle (ORCL) aims to lure investors through share buybacks and dividends.
2-Year T-Notes Attract Higher Market Demand in March 2015
Primary dealer takedown was lower due to higher market demand. It was 36% of competitive accepted bids—down from 38.5% in February’s auction.
Why Deutsche Bank’s Trading Revenues Plunged in 2Q16
Revenues from Deutsche Bank’s Corporate and Investment banking unit fell by 12% in 2Q16. Revenues from its Global Markets business fell by 28%.
Goldman Sachs Is Down 15%: What Will 1Q16 Earnings Have to Offer?
Analysts expect Goldman Sachs to post 1Q16 EPS of $2.48, which is 45% lower than the corresponding period last year.
European Equities Rise on Expectation of Further Stimulus
European equities rose as the ECB’s president hinted at further stimulus for the European economy amid falling commodities and a slowing global economy.
How Rate Hikes Could Impact Citigroup in 2018
As the Fed targets higher interest rates, credit offtake could be further dampened, partially offset by the Trump administration’s push for domestic manufacturing.
JPMorgan Chase’s Trading Declines across Offerings in 3Q17
CIB’s expenses fell 3% on a year-over-year basis to ~$4.8 billion, mostly due to lower employee compensation.
What Wall Street Analysts Expect from Goldman Sachs’s Earnings
Goldman Sachs’s earnings per share (or EPS) is expected to be $5.12 for the quarter, higher than the $1.98 reported in 2Q15 and the $4.69 reported in 3Q14.
Why did corporate bond yields fall last week?
Yields on US sovereigns fell in the week ended March 13. Along with Treasury yields, corporate bond yields also fell.
BlackRock expected to benefit from fixed income ETFs
BlackRock benefited the most from the money in motion due to macro factors. Fixed income ETFs in 4Q14 attracted almost half of the total new funds in 2014.
What’s Been Offsetting Citigroup’s Trading Decline?
Citigroup (C) has managed an improved performance through investment banking, private banking, and securities services revenues.
Earnings Season Is Expected to Impact US Equity Valuations
The upcoming earnings season can help you understand whether the markets will see prolonged consolidation or upward movement from existing valuations.
Can Newmont Offer an Upside due to These Positive Catalysts?
On June 2, 2016, Jefferies downgraded Newmont Mining (NEM) from “buy” to “hold” due to a near-term price risk from gold and its relatively higher valuation following its strong price performance year-to-date.
Investors Have Chosen to Stay Away from China ETFs
Since July, investors have withdrawn $639 million from the iShares China Large-Cap ETF (FXI).
How Were JPMorgan Chase’s 1Q16 Earnings?
JPMorgan Chase’s 1Q16 earnings beat investors’ expectations. Loan growth and credit quality improved despite weakness from the investment banking business.
What to Expect from JPMorgan Chase’s Q2 Earnings
Wall Street analysts expect JPMorgan Chase to post sales of $30.3 billion in the second quarter. The estimate represents growth of 2.5% YoY.
Goldman Sachs Ups Gold Price Forecasts: Rally to Resume?
Goldman Sachs upped its gold price forecasts. The bank lifted its three, six, and 12-month target prices to $1,800, $1,900, and $2,000 per ounce.
Goldman Sachs Gives Its Top Picks: Buy Tech, Sell Energy
David Kostin of Goldman Sachs (NYSE:GS) is bullish on the tech sector. The sector has outperformed the broader markets this year.
What Warren Buffett’s Stock Market Pessimism Means to You
Warren Buffett’s stock market actions speak louder than words. Berkshire Hathaway’s (NYSE:BRK.B) chairman has been on a selling spree.
Berkshire Hathaway’s Q1 13F: Buffett Is on a Selling Spree
Berkshire Hathaway (NYSE:BRK.B) released its first-quarter 13F on May 15 after the markets closed. Chairman Warren Buffett has been on a selling spree.
Higher Provisions Weigh on JPMorgan Chase’s Q1 Earnings
JPMorgan Chase (NYSE:JPM) reported lower-than-expected first-quarter numbers today. Higher provisions weighed on the bank’s profitability.