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News & Insights

Top Research Reports for Apple, Goldman Sachs, & Applied Materials

May 25, 2021 — 03:27 pm EDT

Written by Sheraz Mian for Zacks  ->

Tuesday, May 25, 2021  

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Goldman Sachs (GS), and Applied Materials (AMAT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.  

You can see all of today’s research reports here >>>  

Apple shares have lagged the market this year, with the stock down -4.4% this year vs. the +12.4% gain for the S&P 500 index. Driving this underperformance is the sentiment shift away from the large-cap Tech stocks and rotation into cyclical and 'value'-oriented stocks. That said,  Apple’s second-quarter fiscal 2021 results did reflect continued momentum in the Services segment, driven by a robust performance of App Store, Cloud Services, Music, advertising and AppleCare.

Moreover, iPad, Mac and Wearables contributed strongly to the quarterly results. Further, iPhone sales increased due to strong demand for iPhone 12 devices. China and Japan iPhone sales increased significantly.  

The Zacks analyst believes that Apple’s near-term prospects are bright, driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, health-focused Apple Watch and robust growth in the Services business. However, increasing scrutiny and legal woes over App Store is a headwind.  

(You can read the full research report on Apple here >>> )  

Shares of Goldman Sachs have gained +55.7% in the last six months against the Zacks Financial - Investment Bank industry’s gain of +45.4%. In fact, the company has an impressive earnings surprise history, having outpaced the Zacks Consensus Estimate in each the trailing four quarters.  

The Zacks analyst believes that the company’s first-quarter 2021 results benefited from robust capital markets performance and reserve release. Goldman’s solid position in announced and completed M&As across the world will keep strengthening the business. Also, business diversification, including digital platforms, helps sustain growth. Efforts to expand consumer lending business are encouraging. Steady capital deployment activities remain a tailwind.  

With a strong liquidity position, it remains less exposed to credit risk in case of any economic downturn. However, legal issues, high dependence on overseas revenues and volatile client-activity might impede top-line growth.  

(You can read the full research report on Goldman Sachs here >>> )  

Shares of Applied Materials have outperformed the Zacks Semiconductor Equipment - Wafer Fabrication industry in the last one-year period (+144.0% vs. +119.0%). The Zacks analyst believes that Applied Materials is driven by strong momentum across Semiconductor Systems and Applied Global Services. Further, solid demand for silicon in several applications across various markets remains a tailwind. Additionally, growing momentum among long-term service agreements is contributing well.  

Furthermore, increased customer spending in foundry and logic on the back of rising need for specialty nodes in automotive, power, 5G rollout, IoT, communications and image sensor markets, is a major positive. Also, strong momentum in conductor etches is benefiting the company’s position in DRAM and NAND. However, market uncertainties continue to persist. Further, mounting expenses are concerns. Also, rising competition poses risk to the company’s market position.  

(You can read the full research report on Applied Materials here >>> )  

Other noteworthy reports we are featuring today include Snap Inc. (SNAP), Exelon Corporation (EXC) and The Travelers Companies, Inc. (TRV).  

Bitcoin, Like the Internet Itself, Could Change Everything  

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.  

See 3 crypto-related stocks now >>  

Sheraz Mian  

Director of Research  

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Robust Portfolio, Services Strength to Benefit Apple (AAPL)

Digital Lending Platform Aids Goldman (GS), High Costs Ail

Applied Materials (AMAT) Rides on Foundry & Logic Spending

Featured Reports

Regulated Investments & Cost Mangement Aid Exelon (EXC)

Per the Zacks analyst Exelon's cost management initiatives will have positive impact on margins and its planned $27B investments through 2024 will strengthen its operation.

Onto Innovation (ONTO) Rides on 5G Momentum Amid Competition

Per the Zacks analyst, Onto Innovation is well positioned to benefit from market strength in memory and radio frequency communications for 5G handsets along with the acceptance of new products.

Auto, Homeowners Business Aid Travelers (TRV), Cat Loss Ails

Per the Zacks analyst, consistent progress and strong market of the auto and homeowners business have driven revenues.

Strength in Glaukos' (GKOS) iStent Product Line Aids Q1 Sales

The Zacks analyst is upbeat about Glaukos' commercial rollout of the iStent inject W. New agreement with Santen Pharmaceutical for PRESERFLO MicroShunt buoys optimism.

Gibraltar (ROCK) Rides on Segmental Performance, Cost Hurt

Per the Zacks analyst' robust performance of Residential, Renewable and Infrastructure segments are likely to boost Gibraltar's margins.

Solid User Growth & Premium Content Demand Aids Snap (SNAP)

Per the Zacks analyst, Snap benefits from an improving user growth driven by strong adoption of Augmented Reality (AR) Lenses and demand for premium Discover content and Shows.

Backlog Boosts Huntington Ingalls (HII), Import Tariff Woes

Per the Zacks analyst, solid backlog count for Huntington Ingalls boosts its revenue growth prospects. Yet expansion of tariffs steel and aluminum import might push up its expenses.

New Upgrades

Electrification & Cost Cuts to Drive American Axle (AXL)

Collaborations with Inovance and REE Automotive are likely to boost American Axle's electrification revenues. Cost cut efforts is also aiding the firm's near-term profits, per the Zacks analyst.

Capri Holdings' (CPRI) Digital Endeavors to Aid Top Line

Per the Zacks analyst, deployment of resources to upgrade distribution infrastructure and e-commerce platform, and expand product offerings bode well for Capri Holdings' sales.

Rising Loans Aid First Republic (FRC), Capital Level Solid

Per Zacks analyst, rising loan and deposit balances along with improving net interest income are likely to aid First Republic's financials. Also, strong capital position remains a favorable factor.

New Downgrades

Biohaven's (BHVN) Reliance on Nurtec Burden Amid Competition

Per the Zacks analyst, Biohaven is solely dependent on successful commercialization of Nurtec for its near-term growth. However, it faces stiff competition from several large pharma companies.

Golar LNG (GLNG) Plagued By Low LNG Demand & Weak Liquidity

The Zacks analyst is concerned about Golar LNG's soft LNG demand, which continues to be hurt by coronavirus-led woes. The company's weak liquidity position is also worrisome.

Phillips 66 (PSXP) to be Hurt by Lower Throughput Volume

Phillips 66 Partners' declining profits due to lower pipeline throughput volumes of crude oil concerns the Zacks analyst. Moreover, its levered balance sheet is troublesome.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Saeed Azhar is a Reuters financial journalist and part of the U.S. banking team, which covers Wall Street's biggest banks. He focuses on Goldman Sachs and Bank of America, and also writes about regional banks. Before moving to New York in July 2022, he led the finance team in the Middle East from Dubai, and also worked in Singapore, covering Southeast Asia finance.

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Should goldman sachs marketbeta u.s. 1000 equity etf (gusa) be on your investing radar.

The Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) was launched on 04/05/2022, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.

The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $1.61 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.11%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.27%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector--about 28.90% of the portfolio. Financials and Healthcare round out the top three.

Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 6.37% of total assets, followed by Apple Inc (AAPL) and Nvidia Corp (NVDA).

The top 10 holdings account for about 28.69% of total assets under management.

Performance and Risk

GUSA seeks to match the performance of the SOLACTIVE GBS US 1000 INDEX before fees and expenses. The Solactive GBS United States 1000 Index measures the performance of equity securities of large and mid-capitalization equity issuers covering approximately the largest 1,000 of the free-float market capitalization in the United States.

The ETF has gained about 8.93% so far this year and was up about 27.26% in the last one year (as of 05/09/2024). In the past 52-week period, it has traded between $35.50 and $45.52.

The ETF has a beta of 1.01 and standard deviation of 18.49% for the trailing three-year period. With about 1008 holdings, it effectively diversifies company-specific risk.

Alternatives

Goldman Sachs MarketBeta U.S. 1000 Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GUSA is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $451.12 billion in assets, SPDR S&P 500 ETF has $511.31 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports

Apple Inc. (AAPL) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

SPDR S&P 500 ETF (SPY): ETF Research Reports

iShares Core S&P 500 ETF (IVV): ETF Research Reports

To read this article on Zacks.com click here.

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Global Equity Views

'fat & flat' strikes back.

  Research Unplugged: Cross Asset Views for the Second Half

1) One of the questions we hear most frequently from clients is 'where are we in the cycle'? Of course, no two cycles are the same given that their drivers, and the structural factors that influence them, can vary significantly between one cycle and another. That said, we find that most cycles go through four phases, starting with ‘Despair’ (a bear market) and followed by ‘Hope’ – the strongest and shortest phase, where markets and valuations rise in anticipation of a future profit growth recovery. Next, there is usually a ‘Growth’ phase, where profits recover and grow but valuations fall back and returns moderate. The final phase, which we describe as ‘Optimism’, is generally associated with increasing valuations even as interest rates rise ( Exhibit 1 ). It is generally easier to identify these phases well after they have happened rather than in real time, but we do find that, so far, this cycle has followed this classic pattern ( Exhibit 2 ). Although the Despair phase at the start of the pandemic was shorter than normal (only around one month), it was similar in magnitude to the average cycle. The Hope phase was in line with the average in terms of time (9 months) and annualized returns (at over 60%). The growth phase, despite its name, is typically associated with lower returns. This is because, while EPS are rising, it has often already been paid for in the Hope phase. This has been the case in the current cycle, between January 2021 and October 2022 which was also weaker than average because of the speed of interest rate rises. The optimism phase which started in late 2022 has largely been in line with history, driven by higher valuations.

Exhibit 1 : The 4 phases of an equity cycle

Annualized data for historical phases (S&P 500)

Source: Datastream, Haver Analytics, Goldman Sachs Global Investment Research

Exhibit 2 : The 4 phases of the current cycle

Cumulative data for current phase (S&P 500)

2) While the pattern of returns has been similar to the past, particularly in the Despair and Hope phases, we have argued that the scale of the returns would be relatively 'Fat & Flat', with returns constrained by the ongoing tug of war between rates and growth fears, the higher than average valuations, particularly in the US, and a backdrop of weak earnings growth despite a likely soft landing. The S&P 500, for example, is at more or less the same level as in the summer of last year. Japan and Europe are a little higher, but Asia is a little lower. Overall, the global equity index is broadly unchanged.

Exhibit 3 : The Growth phase in the current cycle has been ‘Fat & Flat’ – with relatively low returns in a wide trading range

World equity indices (indexed price performance, USD)

Source: Datastream, Goldman Sachs Global Investment Research

3) In recent weeks, however, the equity markets have enjoyed a rally, which led to optimism that indexes would decisively break out of the range. This shift higher, since June in particular, has come alongside falling volatility triggered by the fading of left-tail risks, and by large equity dispersion: the resolution of the US debt ceiling and slowing of deposit flight from US regional banks have both helped, while lower commodity prices have reduced the risks of inflation becoming more entrenched. The more recent intense focus on AI and its impact has also provided a narrative to fuel renewed enthusiasm for growth. In combination, equity markets were rising despite pedestrian profit growth in most regions and valuations have increased despite higher interest rates, even (and in some cases in particular) in the long-duration technology areas of the markets. These are all characteristics of the typical late-cycle Optimism phase.

Exhibit 4 : Equities have enjoyed a rally, which came alongside falling volatility

S&P 500 and VIX (1-week average)

Source: Bloomberg, Goldman Sachs Global Investment Research

4) Another important driver of equities in recent weeks has been that the market-implied probability of recession has moved towards our economists ' more positive view on economic growth. Our GOAL Team flagged that the increase in our Risk Appetite Indicator has been mostly driven by a sharp pro-cyclical repricing across assets, pushing our PC1 'Global Growth factor' to the highest level since early 2021. Markets have moved ahead of macro data, and the current gap between PC1 and macro surprises as captured by the global MAP score is large, suggesting that a soft landing is being priced.

Exhibit 5 : The increase in our Risk Appetite Indicator has been mostly driven by a sharp pro-cyclical repricing across assets

Exhibit 6 : markets have moved ahead of macro data.

Risk Appetite Indicator level and momentum factors

PC1: Global growth factor and Global MAP Score

Source: Goldman Sachs Global Investment Research

A similar observation can be made looking at global cyclicals versus defensives and plotting this against the global PMI. Despite the most recent softening of survey data, market pricing appears to be consistent with stronger growth moving forward.

Exhibit 7 : Market pricing appears to be consistent with stronger growth moving forward

Global Cyclicals vs. Defensives y/y and Global Composite PMI

Source: Datastream, Worldscope, Haver Analytics, Goldman Sachs Global Investment Research

5) Despite these improvements, we think the absolute upside for equity markets is constrained by both high valuations and the prospects for interest rates to remain higher for longer than the market has been pricing. Post the June meeting, ECB commentary has turned more hawkish, with Board Member Schnabel arguing that the optimal risk management strategy was still to err on the hawkish side and Governor Wunsch calling for hikes this past November. Chair Powell emphasized the need for further tightening in his semi-annual testimony to Congress. Last week, the Bank of England and the Norges Bank surprised to the upside with a move of 50 bps. Meanwhile, on the activity front, PMIs continued to see weakening activity which has largely been concentrated in the manufacturing sector but more recently extended to services as well.

Exhibit 8 : Sentiment Indicators have sharply increased while Manufacturing PMIs remain weak

Exhibit 9 : elevated levels of sentiment do not, in themselves, represent a bearish signal.

Average percentile of sentiment indicators (data since 2007) and Global Manufacturing PMI

S&P 500 3m return distribution

Elevated levels of sentiment point to a less favourable asymmetry for equity returns but do not, in themselves, represent a bearish signal – the distribution of subsequent 3-month S&P 500 returns from levels of our sentiment component above the 80th percentile shows that the right tail is more capped relative to the unconditional, but the left tail is not 'fatter' . In terms of valuation, the US equity market in particular is trading at valuations well above the historical averages ( Exhibit 10 ), and is now close to 20x forward consensus earnings (and even higher on our lower earnings assumptions). Other markets look cheaper, although in most cases they too have re-rated in recent weeks. The combination suggests that the Fat & Flat range remains intact.

Exhibit 10 : The US equity market is trading at valuations well above the historical averages

12m fwd P/E ranges (MSCI Regions) over a 20-year timeline

Source: FactSet, Goldman Sachs Global Investment Research

Valuations of equities have also increasingly de-coupled from real interest rates . As Exhibit 11 shows, the S&P 500 P/E has increased sharply in recent weeks despite a rise in real bond yields. This implies that either investors expect rapid rate cuts, or that long-term growth expectations have gone up, or a combination.

Exhibit 11 : Valuations of equities have increasingly de-coupled from real interest rates

S&P 500 12m fwd P/E and US 10y Real Yield

6) In our view, this optimism on interest rate relief is premature; our economists have argued that the market-implied path for inflation remains too optimistic and, by inference, the prospects for interest rate declines. In the US, the gap between our expected path for inflation and the market-implied path continues to rise into next year.

Exhibit 12 : The gap between our expected path for inflation and the market-implied path continues to rise into next year

Inflation, GS forecast and market-implied (United States)

7) Even if the market happens to be right in expecting earlier rate cuts than we do, the reasons for these interest rate cuts would matter. Exhibit 13 shows that, in recent cycles, the path of returns on equities once interest rates cuts begin depends on the path for growth, as well as market valuations.

Exhibit 13 : The path of returns in equities once interest rates cuts begin depends on the path for growth as well as market valuations

S&P 500 price performance. Indexed to 100 the day of the Fed's first cut in a cutting cycle

A persistent deterioration in the economic environment, even after rate cuts, had continued to weigh on equity returns during the financial crisis. By contrast, interest rate cuts did not help the equity market in the aftermath of the collapse of the technology bubble at the turn of the century because valuations were so high. At the current time, in the absence of a recession, the urgency for central banks to cut interest rates is likely to be less than the market is pricing.

While we do not expect a recession, the outlook for profit growth remains subdued ( Exhibit 14 ). We expect virtually no profit growth (other than in Japan) this year, and mid-single-digit growth rates (other than in Asia, from a low base) next year.

The combination of high valuations and relatively slow profit growth implies a positive, albeit moderate, return for equities.

Exhibit 14 : The outlook for profit growth remains subdued

MSCI AC World EPS growth y/y (GS forecasts in orange)

Source: I/B/E/S, MSCI, Goldman Sachs Global Investment Research

8) An additional concern is that the contributions of returns in most equity markets have been narrow. It is not uncommon to have a narrow market late in the cycle, during the Optimism phase, but it remains a concern for active investors (in Europe and US ). As shown in Exhibit 15 , the 15 biggest companies have driven 86% of the return in the US year to date and 100% in Asia (ex Japan). Europe’s market breadth has been somewhat healthier, with 39% coming from the biggest 15 companies, but the performance of the median company has been very modest.

Exhibit 15 : The 15 biggest companies have driven 86% of the return in the US year to date and 100% in Asia (ex Japan)

% Contribution to YTD change in market cap

Year to date, the biggest 15 companies in the S&P have gone up 34%, while the median company is up just 1%. On this basis, Japan has had the most impressive returns, with the median company up 11% ( Exhibit 16 ).

Exhibit 16 : YTD, the biggest 15 companies in the S&P have gone up 34%, while the median company is up just 1%

YTD price return

9) A debate has now grown around this narrow leadership of the market: will it be resolved by a catching-up of the rest of the market or through a catching-down of the leading companies? We have found that in Europe, when the market is rallying with narrow leadership, subsequent 12m returns for the aggregate index are positive in 71% of instances (unconditional average following rallies = 62%). Over the past couple of weeks, market breadth has started to improve, suggesting that greater confidence in growth is leading to a widening of optimism about non-tech parts of the market. But the narrow contributions of returns remain very significant – particularly in the US, driven by technology. Also, equity/bond yield correlations have been positive, even for long duration Nasdaq, resulting in lower equity risk premia and equities turning more expensive relative to bonds .

The dominance of the tech rally has come despite the rise in interest rates, suggesting that the drivers of the re-rating are not duration, but rather an increase in longer-term growth expectations, reflecting the perceived benefits accruing to these companies (from AI). This is also reflected in the way that US technology valuations are moving ahead of those in other markets. For example, their valuations have recently pulled away from the valuations of the tech sector in Europe ( Exhibit 17 ).

Exhibit 17 : The valuations of US tech have recently pulled away from those of the European tech sector

24m fwd P/E, S&P 500 and MSCI Europe Information Technology

At the same time, comparing sectors across the US and Europe on a Price-to-Book basis with their Return On Equity shows that most sectors are valued in line with expected profitability. The S&P 500 and the STOXX 600 are trading in line with expected returns and so, too, are the ' healthy' GRANOLAS . Technology is maybe an exception, having moved above the curve. By contrast, European Energy remains well below the curve.

Exhibit 18 : Most sectors are valued in line with expected profitability

S&P 500 and MSCI Europe GICS level 1 sectors, 12m fwd Price to Book Value and ROE

We continue to like a barbell approach that includes a combination of quality growth, strong balance sheet and high margin businesses, with some deep value where valuation risks are skewed to the upside.

10) Overall, we expect most equity markets to remain in the 'Fat & Flat' range, while making a return close to their cost of capital over the next 12 months, reflecting the absence of recession. Nevertheless, poor earnings growth at the index level and high valuations, particularly in the US, suggest that the upside risks are limited over a 12-month view relative to cash on a risk-adjusted basis. Put-call skew indicates that upside positioning is now crowded and downside protection is attractively priced.

Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix , or go to www.gs.com/research/hedge.html .

Disclosure Appendix

We, Peter Oppenheimer, Sharon Bell, Lilia Peytavin, Guillaume Jaisson and Marcus von Scheele, hereby certify that all of the views expressed in this report accurately reflect our personal views, which have not been influenced by considerations of the firm's business or client relationships.

Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Goldman Sachs' Global Investment Research division.

Disclosures

Msci disclosure.

All MSCI data used in this report is the exclusive property of MSCI, Inc. (MSCI). Without prior written permission of MSCI, this information and any other MSCI intellectual property may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an “as is” basis, and the user of this information assumes the entire risk of any use made of this information. Neither MSCI, any of its affiliates nor any third party involved in, or related to, computing or compiling the data makes any express or implied warranties or representations with respect to this information (or the results to be obtained by the use thereof), and MSCI, its affiliates and any such third party hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in, or related to, computing or compiling the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. MSCI and the MSCI indexes are service marks of MSCI and its affiliates. The Global Industry Classification Standard (GICS) were developed by and is the exclusive property of MSCI and Standard & Poor’s. GICS is a service mark of MSCI and S&P and has been licensed for use by The Goldman Sachs Group.

Equity Basket Disclosure

The ability to trade the basket(s) discussed in this research will depend upon market conditions, including liquidity and borrow constraints at the time of trade.

Regulatory disclosures

Disclosures required by united states laws and regulations.

See company-specific regulatory disclosures above for any of the following disclosures required as to companies referred to in this report: manager or co-manager in a pending transaction; 1% or other ownership; compensation for certain services; types of client relationships; managed/co-managed public offerings in prior periods; directorships; for equity securities, market making and/or specialist role. Goldman Sachs trades or may trade as a principal in debt securities (or in related derivatives) of issuers discussed in this report.

The following are additional required disclosures: Ownership and material conflicts of interest:  Goldman Sachs policy prohibits its analysts, professionals reporting to analysts and members of their households from owning securities of any company in the analyst's area of coverage.   Analyst compensation:  Analysts are paid in part based on the profitability of Goldman Sachs, which includes investment banking revenues.  Analyst as officer or director:  Goldman Sachs policy generally prohibits its analysts, persons reporting to analysts or members of their households from serving as an officer, director or advisor of any company in the analyst's area of coverage.   Non-U.S. Analysts:  Non-U.S. analysts may not be associated persons of Goldman Sachs & Co. LLC and therefore may not be subject to FINRA Rule 2241 or FINRA Rule 2242 restrictions on communications with subject company, public appearances and trading securities held by the analysts. 

Additional disclosures required under the laws and regulations of jurisdictions other than the United States

The following disclosures are those required by the jurisdiction indicated, except to the extent already made above pursuant to United States laws and regulations. Australia:  Goldman Sachs Australia Pty Ltd and its affiliates are not authorised deposit-taking institutions (as that term is defined in the Banking Act 1959 (Cth)) in Australia and do not provide banking services, nor carry on a banking business, in Australia. This research, and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act, unless otherwise agreed by Goldman Sachs. In producing research reports, members of Global Investment Research of Goldman Sachs Australia may attend site visits and other meetings hosted by the companies and other entities which are the subject of its research reports. In some instances the costs of such site visits or meetings may be met in part or in whole by the issuers concerned if Goldman Sachs Australia considers it is appropriate and reasonable in the specific circumstances relating to the site visit or meeting. To the extent that the contents of this document contains any financial product advice, it is general advice only and has been prepared by Goldman Sachs without taking into account a client's objectives, financial situation or needs. A client should, before acting on any such advice, consider the appropriateness of the advice having regard to the client's own objectives, financial situation and needs. A copy of certain Goldman Sachs Australia and New Zealand disclosure of interests and a copy of Goldman Sachs’ Australian Sell-Side Research Independence Policy Statement are available at: https://www.goldmansachs.com/disclosures/australia-new-zealand/index.html .  Brazil:  Disclosure information in relation to CVM Resolution n. 20 is available at https://www.gs.com/worldwide/brazil/area/gir/index.html . Where applicable, the Brazil-registered analyst primarily responsible for the content of this research report, as defined in Article 20 of CVM Resolution n. 20, is the first author named at the beginning of this report, unless indicated otherwise at the end of the text.  Canada:  This information is being provided to you for information purposes only and is not, and under no circumstances should be construed as, an advertisement, offering or solicitation by Goldman Sachs & Co. LLC for purchasers of securities in Canada to trade in any Canadian security. Goldman Sachs & Co. LLC is not registered as a dealer in any jurisdiction in Canada under applicable Canadian securities laws and generally is not permitted to trade in Canadian securities and may be prohibited from selling certain securities and products in certain jurisdictions in Canada. If you wish to trade in any Canadian securities or other products in Canada please contact Goldman Sachs Canada Inc., an affiliate of The Goldman Sachs Group Inc., or another registered Canadian dealer.  Hong Kong:  Further information on the securities of covered companies referred to in this research may be obtained on request from Goldman Sachs (Asia) L.L.C.  India:  Further information on the subject company or companies referred to in this research may be obtained from Goldman Sachs (India) Securities Private Limited, Research Analyst - SEBI Registration Number INH000001493, 951-A, Rational House, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India, Corporate Identity Number U74140MH2006FTC160634, Phone +91 22 6616 9000, Fax +91 22 6616 9001. Goldman Sachs may beneficially own 1% or more of the securities (as such term is defined in clause 2 (h) the Indian Securities Contracts (Regulation) Act, 1956) of the subject company or companies referred to in this research report.  Japan:  See below.  Korea:  This research, and any access to it, is intended only for "professional investors" within the meaning of the Financial Services and Capital Markets Act, unless otherwise agreed by Goldman Sachs. Further information on the subject company or companies referred to in this research may be obtained from Goldman Sachs (Asia) L.L.C., Seoul Branch.  New Zealand:  Goldman Sachs New Zealand Limited and its affiliates are neither "registered banks" nor "deposit takers" (as defined in the Reserve Bank of New Zealand Act 1989) in New Zealand. This research, and any access to it, is intended for "wholesale clients" (as defined in the Financial Advisers Act 2008) unless otherwise agreed by Goldman Sachs. A copy of certain Goldman Sachs Australia and New Zealand disclosure of interests is available at: https://www.goldmansachs.com/disclosures/australia-new-zealand/index.html .  Russia:  Research reports distributed in the Russian Federation are not advertising as defined in the Russian legislation, but are information and analysis not having product promotion as their main purpose and do not provide appraisal within the meaning of the Russian legislation on appraisal activity. Research reports do not constitute a personalized investment recommendation as defined in Russian laws and regulations, are not addressed to a specific client, and are prepared without analyzing the financial circumstances, investment profiles or risk profiles of clients. Goldman Sachs assumes no responsibility for any investment decisions that may be taken by a client or any other person based on this research report.  Singapore:  Goldman Sachs (Singapore) Pte. (Company Number: 198602165W), which is regulated by the Monetary Authority of Singapore, accepts legal responsibility for this research, and should be contacted with respect to any matters arising from, or in connection with, this research.  Taiwan:  This material is for reference only and must not be reprinted without permission. Investors should carefully consider their own investment risk. Investment results are the responsibility of the individual investor.  United Kingdom:  Persons who would be categorized as retail clients in the United Kingdom, as such term is defined in the rules of the Financial Conduct Authority, should read this research in conjunction with prior Goldman Sachs research on the covered companies referred to herein and should refer to the risk warnings that have been sent to them by Goldman Sachs International. A copy of these risks warnings, and a glossary of certain financial terms used in this report, are available from Goldman Sachs International on request. 

European Union and United Kingdom:  Disclosure information in relation to Article 6 (2) of the European Commission Delegated Regulation (EU) (2016/958) supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council (including as that Delegated Regulation is implemented into United Kingdom domestic law and regulation following the United Kingdom’s departure from the European Union and the European Economic Area) with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest is available at https://www.gs.com/disclosures/europeanpolicy.html which states the European Policy for Managing Conflicts of Interest in Connection with Investment Research. 

Japan:  Goldman Sachs Japan Co., Ltd. is a Financial Instrument Dealer registered with the Kanto Financial Bureau under registration number Kinsho 69, and a member of Japan Securities Dealers Association, Financial Futures Association of Japan Type II Financial Instruments Firms Association, The Investment Trusts Association, Japan, and Japan Investment Advisers Association. Sales and purchase of equities are subject to commission pre-determined with clients plus consumption tax. See company-specific disclosures as to any applicable disclosures required by Japanese stock exchanges, the Japanese Securities Dealers Association or the Japanese Securities Finance Company. 

Global product; distributing entities

Goldman Sachs Global Investment Research produces and distributes research products for clients of Goldman Sachs on a global basis. Analysts based in Goldman Sachs offices around the world produce research on industries and companies, and research on macroeconomics, currencies, commodities and portfolio strategy. This research is disseminated in Australia by Goldman Sachs Australia Pty Ltd (ABN 21 006 797 897); in Brazil by Goldman Sachs do Brasil Corretora de Títulos e Valores Mobiliários S.A.; Public Communication Channel Goldman Sachs Brazil: 0800 727 5764 and / or [email protected]. Available Weekdays (except holidays), from 9am to 6pm. Canal de Comunicação com o Público Goldman Sachs Brasil: 0800 727 5764 e/ou [email protected]. Horário de funcionamento: segunda-feira à sexta-feira (exceto feriados), das 9h às 18h; in Canada by Goldman Sachs & Co. LLC; in Hong Kong by Goldman Sachs (Asia) L.L.C.; in India by Goldman Sachs (India) Securities Private Ltd.; in Japan by Goldman Sachs Japan Co., Ltd.; in the Republic of Korea by Goldman Sachs (Asia) L.L.C., Seoul Branch; in New Zealand by Goldman Sachs New Zealand Limited; in Russia by OOO Goldman Sachs; in Singapore by Goldman Sachs (Singapore) Pte. (Company Number: 198602165W); and in the United States of America by Goldman Sachs & Co. LLC. Goldman Sachs International has approved this research in connection with its distribution in the United Kingdom.

Goldman Sachs International (“GSI”), authorised by the Prudential Regulation Authority (“PRA”) and regulated by the Financial Conduct Authority (“FCA”) and the PRA, has approved this research in connection with its distribution in the United Kingdom.

European Economic Area: GSI, authorised by the PRA and regulated by the FCA and the PRA, disseminates research in the following jurisdictions within the European Economic Area: the Grand Duchy of Luxembourg, Italy, the Kingdom of Belgium, the Kingdom of Denmark, the Kingdom of Norway, the Republic of Finland and the Republic of Ireland; GSI - Succursale de Paris (Paris branch) which is authorised by the French Autorité de contrôle prudentiel et de resolution (“ACPR”) and regulated by the Autorité de contrôle prudentiel et de resolution and the Autorité des marches financiers (“AMF”) disseminates research in France; GSI - Sucursal en España (Madrid branch) authorized in Spain by the Comisión Nacional del Mercado de Valores disseminates research in the Kingdom of Spain; GSI - Sweden Bankfilial (Stockholm branch) is authorized by the SFSA as a “third country branch” in accordance with Chapter 4, Section 4 of the Swedish Securities and Market Act (Sw. lag (2007:528) om värdepappersmarknaden) disseminates research in the Kingdom of Sweden; Goldman Sachs Bank Europe SE (“GSBE”) is a credit institution incorporated in Germany and, within the Single Supervisory Mechanism, subject to direct prudential supervision by the European Central Bank and in other respects supervised by German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and Deutsche Bundesbank and disseminates research in the Federal Republic of Germany and those jurisdictions within the European Economic Area where GSI is not authorised to disseminate research and additionally, GSBE, Copenhagen Branch filial af GSBE, Tyskland, supervised by the Danish Financial Authority disseminates research in the Kingdom of Denmark; GSBE - Sucursal en España (Madrid branch) subject (to a limited extent) to local supervision by the Bank of Spain disseminates research in the Kingdom of Spain; GSBE - Succursale Italia (Milan branch) to the relevant applicable extent, subject to local supervision by the Bank of Italy (Banca d’Italia) and the Italian Companies and Exchange Commission (Commissione Nazionale per le Società e la Borsa “Consob”) disseminates research in Italy; GSBE - Succursale de Paris (Paris branch), supervised by the AMF and by the ACPR disseminates research in France; and GSBE - Sweden Bankfilial (Stockholm branch), to a limited extent, subject to local supervision by the Swedish Financial Supervisory Authority (Finansinpektionen) disseminates research in the Kingdom of Sweden.

General disclosures

This research is for our clients only. Other than disclosures relating to Goldman Sachs, this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate, but various regulations may prevent us from doing so. Other than certain industry reports published on a periodic basis, the large majority of reports are published at irregular intervals as appropriate in the analyst's judgment.

Goldman Sachs conducts a global full-service, integrated investment banking, investment management, and brokerage business. We have investment banking and other business relationships with a substantial percentage of the companies covered by Global Investment Research. Goldman Sachs & Co. LLC, the United States broker dealer, is a member of SIPC ( https://www.sipc.org ).

Our salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients and principal trading desks that reflect opinions that are contrary to the opinions expressed in this research. Our asset management area, principal trading desks and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this research.

We and our affiliates, officers, directors, and employees will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research, unless otherwise prohibited by regulation or Goldman Sachs policy.

The views attributed to third party presenters at Goldman Sachs arranged conferences, including individuals from other parts of Goldman Sachs, do not necessarily reflect those of Global Investment Research and are not an official view of Goldman Sachs.

Any third party referenced herein, including any salespeople, traders and other professionals or members of their household, may have positions in the products mentioned that are inconsistent with the views expressed by analysts named in this report.

This research is focused on investment themes across markets, industries and sectors. It does not attempt to distinguish between the prospects or performance of, or provide analysis of, individual companies within any industry or sector we describe.

Any trading recommendation in this research relating to an equity or credit security or securities within an industry or sector is reflective of the investment theme being discussed and is not a recommendation of any such security in isolation.

This research is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments.

Certain transactions, including those involving futures, options, and other derivatives, give rise to substantial risk and are not suitable for all investors. Investors should review current options and futures disclosure documents which are available from Goldman Sachs sales representatives or at https://www.theocc.com/about/publications/character-risks.jsp and https://www.fiadocumentation.org/fia/regulatory-disclosures_1/fia-uniform-futures-and-options-on-futures-risk-disclosures-booklet-pdf-version-2018 . Transaction costs may be significant in option strategies calling for multiple purchase and sales of options such as spreads. Supporting documentation will be supplied upon request.

Differing Levels of Service provided by Global Investment Research: The level and types of services provided to you by Goldman Sachs Global Investment Research may vary as compared to that provided to internal and other external clients of GS, depending on various factors including your individual preferences as to the frequency and manner of receiving communication, your risk profile and investment focus and perspective (e.g., marketwide, sector specific, long term, short term), the size and scope of your overall client relationship with GS, and legal and regulatory constraints. As an example, certain clients may request to receive notifications when research on specific securities is published, and certain clients may request that specific data underlying analysts’ fundamental analysis available on our internal client websites be delivered to them electronically through data feeds or otherwise. No change to an analyst’s fundamental research views (e.g., ratings, price targets, or material changes to earnings estimates for equity securities), will be communicated to any client prior to inclusion of such information in a research report broadly disseminated through electronic publication to our internal client websites or through other means, as necessary, to all clients who are entitled to receive such reports.

All research reports are disseminated and available to all clients simultaneously through electronic publication to our internal client websites. Not all research content is redistributed to our clients or available to third-party aggregators, nor is Goldman Sachs responsible for the redistribution of our research by third party aggregators. For research, models or other data related to one or more securities, markets or asset classes (including related services) that may be available to you, please contact your GS representative or go to https://research.gs.com .

Disclosure information is also available at https://www.gs.com/research/hedge.html or from Research Compliance, 200 West Street, New York, NY 10282.

© 2023 Goldman Sachs.

No part of this material may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of The Goldman Sachs Group, Inc.

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How do I find investment analysts' reports on companies, industries and geographies?

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Answered By: Meghan Dolan Last Updated: May 09, 2024     Views: 34227

Analyst Reports contain advice on whether to buy or sell the securities of specific companies or industries. They are produced by research analysts employed by firms that may have an interest in selling securities; however, they can provide a useful model to students in understanding how investment professionals analyze an industry and what data points they find of most interest. 

Please note:  analyst reports from several   highly ranked investment firms are  not  included in our Refinitiv Workspace access (e.g. Goldman Sachs, BOFA Merrill Lynch, etc.) 

How to locate COMPANY analyst reports:

Use Refinitiv Workspace

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• Use the filters on the left to narrow down your results (Note: To limit to initiating coverage reports, use the Subjects/Topics filter, and select Initiation )

How to locate INDUSTRY/GEOGRAPHY analyst reports using keywords:

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• Use the filters on the left to update the Date Range, select Industry, Country/Region, Contributor (investment bank or publisher), etc. and use the Keyword Search fields to enter your search terms

Video on Using Refinitiv Workspace:

Retention of reports: To comply with agreements they have with the banks, databases that aggregate investment reports will sometimes remove older reports, particularly if the author leaves the investment bank they were written for. For this reason, on occasion particularly older reports will suddenly disappear.

For a multimedia learning module on Refinitiv Workspace check out our Learn with Baker Library Refinitiv Workspace Introduction.

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Is Trending Stock The Goldman Sachs Group, Inc. (GS) a Buy Now?

Goldman Sachs ( GS Quick Quote GS - Free Report ) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this investment bank have returned +4% over the past month versus the Zacks S&P 500 composite's -4.1% change. The Zacks Financial - Investment Bank industry, to which Goldman belongs, has lost 1.1% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings Estimates

Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Goldman is expected to post earnings of $8.67 per share, indicating a change of +181.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +6.1% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $35.86 points to a change of +56.8% from the prior year. Over the last 30 days, this estimate has changed +9.9%.

For the next fiscal year, the consensus earnings estimate of $38.78 indicates a change of +8.2% from what Goldman is expected to report a year ago. Over the past month, the estimate has changed +5.4%.

Having a strong externally audited track record , our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates , Goldman is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue Growth

Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Goldman, the consensus sales estimate of $12.64 billion for the current quarter points to a year-over-year change of +16.1%. The $51.28 billion and $53.23 billion estimates for the current and next fiscal years indicate changes of +10.9% and +3.8%, respectively.

Last Reported Results and Surprise History

Goldman reported revenues of $14.21 billion in the last reported quarter, representing a year-over-year change of +16.3%. EPS of $11.58 for the same period compares with $8.79 a year ago.

Compared to the Zacks Consensus Estimate of $12.89 billion, the reported revenues represent a surprise of +10.26%. The EPS surprise was +35.6%.

Over the last four quarters, Goldman surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Goldman is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Goldman. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

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Goldman Sachs BDC: Q1 Earnings Snapshot

NEW YORK — NEW YORK — Goldman Sachs BDC Inc. (GSBD) on Tuesday reported first-quarter earnings of $42.5 million.

The New York-based company said it had net income of 39 cents per share. Earnings, adjusted for one-time gains and costs, came to 54 cents per share.

The results did not meet Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 55 cents per share.

The specialty finance company posted revenue of $111.5 million in the period.

This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GSBD at https://www.zacks.com/ap/GSBD