Goldman Sachs Group Inc (NYSE:GS) toppled their 52-week high today, closing out the day at $183.98 as was reported earlier today by Fox Business News. The feat is actually far more of a milestone than just 52-weeks however; Goldman Sachs Group Inc (NYSE:GS) has reached its highest level since May, 2008.
From mid-2008 through to the end of that year, Goldman Sachs Group Inc (NYSE:GS)’s stock would shed half its value as the financial crisis took a heavy toll on Wall Street companies. There have been peaks and valleys in the years since, with the stock finally settling into a lethargic but steady climb over the past few months, clawing its way up 11.27% over the past half a year.
The secret to Goldman Sachs Group Inc (NYSE:GS)’s success is not a secret. The investment bank has managed not only to stay profitable, but to greatly outperform their peers dating all the way back to the onset of the financial crisis. As Goldman Sachs Group Inc (NYSE:GS) CEO Lloyd Blankfein and COO Gary Cohen noted in a recent letter to investors, they have outperformed their peers an average of four-fold in terms of RoE, while vastly strengthening their operations and position in several categories since 2007.
They’ve nearly shareholders’ equity to $78 billion as of the end of 2013. Their gross leverage ratio has been decreased by more than half, to 13 times. Their level 3 assets have been reduced by nearly $60 billion, while their GCE as a percentage of assets rate has nearly quadrupled to 20.2%. Meanwhile, revenue for 2013 came in at $34.2 billion, with earnings of $8 billion.
All of those factors have conspired to lift Goldman Sachs Group Inc (NYSE:GS)’s stock from the depths of financial crisis despair into the stratosphere of a bright future. However don’t get carried away on the wings of hope. The stock has a hold rating from a majority of analysts, with the average price target coming around $180; which the stock has now already soared past.
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