● AI Equity Research · Financial Services

Goldman Sachs Group, Inc. (The) (GS)

AI stock analysis · Capital Markets · Last analyzed Aug 19, 2026

Compass Score

3.0/5

Call

Hold

Price

$1040.47

AI Target

$1141.65 +9.7%

AI Analyst Summary

Goldman Sachs is riding a powerful cyclical and structural recovery in investment banking and capital markets, delivering 92.3% YoY EPS growth and 42.5% revenue growth — a standout performance relative to Financial Services peers. At a forward P/E of 14.1x and a PEG of 1.48x, the stock appears attractively valued given its earnings trajectory, with a $101 gap to the analyst consensus price target offering meaningful upside. The key risk is that the current earnings surge is heavily dependent on elevated market activity and deal volumes, which are inherently cyclical and could compress sharply in a risk-off environment.

Catalysts

Continued investment banking fee recovery: A rebound in M&A and IPO pipeline activity in H2 2025 could drive another quarter of above-consensus revenue, potentially prompting analyst upgrades from Hold to Buy.
Equity and FICC trading revenues: Sustained market volatility and client activity in fixed income, currencies, and commodities could extend the exceptional trading revenue cycle into the next earnings print.
Capital return acceleration: A strong balance sheet and improving ROE could support a dividend increase or expanded buyback announcement, acting as a positive re-rating catalyst for the stock.

Fundamentals

Pe Trailing P/E 16.1x / Forward P/E 14.1x · 4.0/5

Trailing P/E of 16.1x and forward P/E of 14.1x are below the capital markets sector median, and are well-justified by exceptional earnings growth. Valuation looks attractive on a forward basis.

Peg PEG 1.48x · 4.0/5

PEG of 1.48x is comfortably below 2.0 and reflects strong growth relative to valuation. Given the 92% YoY earnings growth backdrop, this PEG understates the quality of the setup.

Analyst Rating Hold (2.6) — 7 Buy / 16 Hold / 2 Sell (20 analysts) · 3.0/5

Consensus sits at 2.6 on the inverted scale, mapping to a neutral Hold. The analyst community is cautious with only 7 Buys vs. 16 Holds and 2 Sells, suggesting limited near-term upgrade catalyst has been priced in by the street.

Earnings Trend EPS Growth +92.3% YoY / Revenue Growth +42.5% YoY · 5.0/5

Earnings growth of 92.3% YoY is exceptional and far above sector peers. Revenue growth of 42.5% confirms the top-line is broadly supporting the bottom-line surge, reflecting a strong operating environment in capital markets and investment banking.

Price Target Beat 4 of 4 quarters beat (last 4 quarters) · 3.0/5

A perfect 4-of-4 EPS beat rate over the last 4 quarters is encouraging, but limited to a shorter history. Scored at 3 per guidelines due to insufficient 8-quarter data, though the direction is strongly positive.

Management Consistent Execution · 4.0/5

A 100% EPS beat rate over the available 4 quarters, combined with strong revenue and earnings growth, points to disciplined capital allocation and effective management of trading and advisory revenues. Analyst confidence, though mixed on rating, is reflected in a high price target.

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