In this article, we discuss 10 stocks to buy before interest rate hikes.
The Federal Reserve announced on January 26 that in an effort to contain the continuously rising inflation in the United States, which has reached a 39-year high of 7%, the stock market and investors need to brace for multiple interest rate hikes starting in March 2022. Analysts expect continuously rising rates after March, since history indicates that the last time the Fed decided to spike rates, it revised rates nine times in a three-year period.
With the increasing interest rates, the cost of borrowing will rise incrementally. However, individuals who save their income will not benefit much from the higher rates since the Fed has no direct influence on deposit rates. This market dynamic suggests that the financial sector is set to benefit immensely from the interest rate hikes, since the higher cost of borrowing will result in greater revenues.
Savers have little incentive to keep their money in the banks, in a rising interest rate and inflationary environment, where their funds lose value every day. Most individuals tend to invest in real assets that will not be devalued as quickly as paper money, and this gives the real estate, industrial, and consumer discretionary sectors a boost in demand during high interest rate periods.
The most notable stocks to invest in before interest rates hike include Costco Wholesale Corporation (NASDAQ:COST), Lowe’s Companies, Inc. (NYSE:LOW), and The Goldman Sachs Group, Inc. (NYSE:GS).
Photo by Austin Distel on Unsplash
Our Methodology
We selected stocks that are positioned to benefit from the rising interest rates, mentioning the hedge fund sentiment around each stock.
Stocks to Buy Before Interest Rate Hikes
10. Jabil Inc. (NYSE:JBL)
Number of Hedge Fund Holders: 27
Jabil Inc. (NYSE:JBL) is a Florida-based manufacturing services company that operates worldwide, with manufacturing facilities in 30 countries. Jabil Inc. (NYSE:JBL)’s expertise lies in design engineering, supply chain, and logistics for multiple industries including healthcare, life sciences, clean technology, instrumentation, defense, aerospace, automotive, consumer products, and telecommunications.
On January 20, Jabil Inc. (NYSE:JBL) declared a quarterly dividend of $0.08 per share, in line with previous. The dividend is payable on March 2, to shareholders of record on February 15.
Publishing its Q4 results on December 16, Jabil Inc. (NYSE:JBL) posted earnings per share of $1.92, beating estimates by $0.12. Revenue for the quarter jumped 9.38% year-over-year to $8.57 billion, outperforming estimates by $284.50 million.
Raymond James analyst Melissa Fairbanks on December 17 raised the price target on Jabil Inc. (NYSE:JBL) to $80 from $70 and kept a Strong Buy rating on the shares following the November quarter results. The analyst believes that Jabil Inc. (NYSE:JBL)’s recent diversification efforts have set the company up to benefit from significant long-term secular growth trends across multiple end markets with more consistent and predictable margins and returns through the cycle.
Among the hedge funds tracked by Insider Monkey in Q3 2021, Steve Cohen’s Point72 Asset Management is the biggest Jabil Inc. (NYSE:JBL) stakeholder, with 3.4 million shares worth over $200 million. Overall, 27 hedge funds were bullish on Jabil Inc. (NYSE:JBL) in the third quarter, with stakes totaling $517.3 million.
In addition to Costco Wholesale Corporation (NASDAQ:COST), Lowe’s Companies, Inc. (NYSE:LOW), and The Goldman Sachs Group, Inc. (NYSE:GS), Jabil Inc. (NYSE:JBL) is one of the notable stocks to buy before interest rates hike.
9. Ingersoll Rand Inc. (NYSE:IR)
Number of Hedge Fund Holders: 33
Headquartered in North Carolina, Ingersoll Rand Inc. (NYSE:IR) is a multinational corporation that manufactures industrial solutions including compressors, vacuum and blower solutions, specialized gas and fluid management systems, liquid and precision pumps, power tools, and lifting equipment. Ingersoll Rand Inc. (NYSE:IR) sells its products across global markets under multiple brands.
On October 26, Ingersoll Rand Inc. (NYSE:IR) declared a $0.02 per share quarterly dividend, in line with previous. The dividend was paid on December 17, to shareholders of record on November 10.
Baird analyst Michael Halloran lowered the price target on Ingersoll Rand Inc. (NYSE:IR) to $64 from $68 and kept an Outperform rating on the shares on January 20. The analyst observed that there is a significant internal transformation underway at Ingersoll Rand Inc. (NYSE:IR), an underappreciated growth profile, important margin levers, and capital deployment optionality including further portfolio reconstitution ahead.
Ingersoll Rand Inc. (NYSE:IR) on October 28 entered into an agreement to acquire Air Dimensions for an all cash purchase of $70.5 million. Air Dimensions manufactures vacuum diaphragm pumps primarily for environmental applications in high growth, sustainable end markets such as emission monitoring, biogas, utility, and chemical processes. The acquisition, which was closed on October 29, positioned Ingersoll Rand Inc. (NYSE:IR) for future growth as a highly profitable business serving sustainable end markets, owing to the meaningful synergy opportunities that were identified.
Billionaire Andreas Halvorsen’s Viking Global is the largest Ingersoll Rand Inc. (NYSE:IR) stakeholder as of Q3 2021, with 3.6 million shares worth $183.5 million. Overall, 33 hedge funds reported owning stakes in Ingersoll Rand Inc. (NYSE:IR) in the third quarter of 2021, totaling $732.8 million.
Here is what Artisan Global Discovery Fund has to say about Ingersoll Rand Inc. (NYSE:IR) in its Q3 2021 investor letter:
“We also added to Ingersoll Rand. Ingersoll Rand is a global market leader with a broad range of mission-critical flow creation technologies (pumps, compressors, etc.) for industrial and medical applications. Over the past several years, a new management team has repositioned the company toward less cyclical, more profitable businesses, which are supported by a stronger culture of employee engagement and continuous improvement. More recently, the company’s top-line growth has accelerated as the pandemic fades, and margins are benefiting from cost synergies achieved in its merger integration with Gardner Denver (with further runway ahead). This has boosted cash flows and enabled management to resume its successful bolt-on acquisition strategy, acquiring Seepex GmbH, a global leader in positive displacement pumps for end markets such as water, wastewater, food and beverage and chemicals, in Q2. With an increasingly visible organic and acquisition-driven growth capability, characteristics the market appears to be undervaluing, we added to our position at an attractive discount to our PMV estimate.”
8. PacWest Bancorp (NASDAQ:PACW)
Number of Hedge Fund Holders: 33
PacWest Bancorp (NASDAQ:PACW) is a California-based bank holding company that operates via its wholly owned subsidiary, Pacific Western Bank. Offering consumer banking, corporate banking, mortgage loans, and venture debt, PacWest Bancorp (NASDAQ:PACW) provides its services to small and medium-sized businesses.
In its fourth quarter earnings report, published on January 19, PacWest Bancorp (NASDAQ:PACW) posted an EPS of $1.18, exceeding estimates by $0.16. PacWest Bancorp (NASDAQ:PACW)’s revenue for the period came in at $361.92 million, up 21% from the prior-year quarter, outperforming estimates by $26.95 million.
On November 1, PacWest Bancorp (NASDAQ:PACW) declared a quarterly dividend of $0.25 per share, in line with previous. The dividend was distributed on November 30, to shareholders of record on November 15. PacWest Bancorp (NASDAQ:PACW)’s dividend yield on January 27 came in at 2.17%.
Truist analyst Brandon King raised the price target on PacWest Bancorp (NASDAQ:PACW) on January 21 to $60 from $55 and kept a Buy rating on the shares after its Q4 earnings beat. The analyst also raised his FY23 EPS view by 50c to $5.00 while noting that the revision primarily reflected higher spread income given the increased Fed hike assumptions, offset partially by higher expenses.
In the third quarter of 2021, Cardinal Capital was the biggest stakeholder of PacWest Bancorp (NASDAQ:PACW), owning more than 5 million shares worth $232.4 million. Overall, 33 hedge funds in Q3 2021 were long PacWest Bancorp (NASDAQ:PACW), up from 29 funds in the preceding quarter.
7. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 55
Costco Wholesale Corporation (NASDAQ:COST) is a California-based multinational retail company that operates big box stores worldwide. Costco Wholesale Corporation (NASDAQ:COST) specializes in merchandise, cash and carry, warehouse club, and filling stations.
On January 12, Truist analyst Scot Ciccarelli initiated coverage of Costco Wholesale Corporation (NASDAQ:COST) with a Buy rating and a $606 price target. The analyst observed that its size and purchasing concentration has afforded Costco Wholesale Corporation (NASDAQ:COST) “nearly unrivaled” buying power. He believes the extreme value that Costco Wholesale Corporation (NASDAQ:COST) offers to its members likely provides it with the highest barriers to entry in retail.
Costco Wholesale Corporation (NASDAQ:COST) declared on January 20 a $0.79 per share quarterly dividend, in line with previous. The dividend will be distributed on February 18, to shareholders of record on February 4.
Costco Wholesale Corporation (NASDAQ:COST) announced its Q4 results on December 9, posting GAAP earnings per share of $2.98, beating estimates by $0.33. The company’s revenue came in at $50.36 billion, up 16.56% from the prior-year quarter, outperforming estimates by $608.85 million.
Among the hedge funds monitored by Insider Monkey, Fisher Asset Management is the biggest stakeholder of Costco Wholesale Corporation (NASDAQ:COST) as of Q3 2021, with 3.8 million shares worth $1.74 billion. Overall, 55 hedge funds reported owning stakes in Costco Wholesale Corporation (NASDAQ:COST) in the third quarter, totaling $4.39 billion.
Here is what Ensemble Capital Management has to say about Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2021 investor letter:
“There are a handful of events that drive major changes in people’s shopping routines. Two of these are moving and having children. Naturally, when you buy a new house or have kids, retailers pepper you with emails and mailers containing valuable coupons and offers because they want to become a part of your new shopping routine.
It turns out that a global pandemic is another one of those routine-altering events. In early 2020, as stay-at home and quarantine orders rolled out around the country, shoppers flocked to Costco to load up on essentials like paper products and food and non-essentials like TVs and alcoholic beverages (or maybe these are “essentials” during a pandemic?).
During this abnormal period, Costco proved and reinforced its membership value proposition. If you want your pantry to be well stocked and limit your shopping trips – all the while getting great value for your money – Costco showed it is the place to go.
Membership loyalty, already strong before the pandemic, continued to increase well after quarantines and stay-at-home orders were lifted. A recent survey by Evercore ISI showed that between 2020 and 2021 Costco gained loyalty across every tested demographic by age and income except for incomes below $45,000. Notably, its biggest loyalty gains came from the 18 to 34 and 35 to 54 year old age groups and incomes between $45,000 and $74,999.
The beauty of Costco’s business model is its simplicity…” (Click here to see the full text)
6. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 55
Capital One Financial Corporation (NYSE:COF) is a Virginia-based bank holding company that offers retail banking, auto loans, credit cards, and savings accounts to its customers.
On January 25, Capital One Financial Corporation (NYSE:COF) posted its Q4 results. Capital One Financial Corporation (NYSE:COF) announced earnings per share of $5.41, exceeding estimates by $0.22. Revenue for the company totaled $8.12 billion, up 10.64% year-over-year, outperforming estimates by $186.64 million.
Capital One Financial Corporation (NYSE:COF) on November 4 declared a $0.60 per share quarterly dividend, in line with previous. The dividend was paid on November 26, to shareholders of record on November 15.
Credit Suisse analyst Moshe Orenbuch on January 26 lowered the price target on Capital One Financial Corporation (NYSE:COF) to $185 from $190 and kept an Outperform rating on the shares after the company reported Q4 earnings per share of $5.41. The analyst pointed out that revenue was higher than expected, due to stronger net interest income and non-interest income. Overall, the analyst is neutral on the quarter, and his estimates are pressured since he is “cautious” on the conservative expense commentary, without a timeframe on when efficiency improvement should be achieved.
Among the hedge funds tracked by Insider Monkey, 55 funds reported owning stakes worth $4.70 billion in Capital One Financial Corporation (NYSE:COF) in the third quarter of 2021. Harris Associates, the largest Capital One Financial Corporation (NYSE:COF) stakeholder, owns a $946.1 million position in the company.
In addition to Costco Wholesale Corporation (NASDAQ:COST), Lowe’s Companies, Inc. (NYSE:LOW), and The Goldman Sachs Group, Inc. (NYSE:GS), hedge funds are piling into Capital One Financial Corporation (NYSE:COF) as a hedge against high interest rates.
Here is what ClearBridge Investments has to say about Capital One Financial Corporation (NYSE:COF) in its Q2 2021 investor letter:
“Portfolio holdings in the communication services and financial sectors also made strong contributions… In financials, Capital One has also benefited, at least indirectly, from government stimulus that has strengthened customer balance sheets and driven credit losses to record lows. Capital One should also benefit from a reopening of the economy and increased discretionary spending.”
5. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 58
Headquartered in Atlanta, Georgia, The Home Depot, Inc. (NYSE:HD) is the leading home improvement retailer in the United States, supplying home appliances, tools, hardware, lumber, building materials, paint, plumbing, flooring, garden supplies, and plants. The Home Depot, Inc. (NYSE:HD) beat market consensus estimates for earnings and revenue in the third quarter of 2021.
Truist analyst Scot Ciccarelli on January 12 upgraded The Home Depot, Inc. (NYSE:HD) to Buy from Hold with a price target of $448, up from $420. The analyst is positive on key industry drivers including supply/demand imbalances in the housing market, pandemic-driven behavioral changes, and aging housing infrastructure driving significant incremental home improvement growth. He further stated that The Home Depot, Inc. (NYSE:HD) will continue to gain market share from its size and scale benefits, as well as enhanced supply chain capabilities.
On November 18, The Home Depot, Inc. (NYSE:HD) declared a $1.65 per share quarterly dividend, in line with previous. The dividend was distributed on December 16, to shareholders of record on December 2.
A total of 58 hedge funds in the third quarter database of Insider Monkey were long The Home Depot, Inc. (NYSE:HD), with stakes equaling $4.38 billion. Ric Dillon’s Diamond Hill Capital is one of the prominent stakeholders of the company, owning a $355.1 million position.
Here is what Ensemble Capital Management has to say about The Home Depot, Inc. (NYSE:HD) in its Q4 2021 investor letter:
“On the more positive side, we saw notable performance contribution from Home Depot. In the midst of a housing shortage and rising home prices, Americans turned to home improvement projects with Home Depot’s startlingly fast growth in 2020 continuing throughout 2021. With each quarter that passed showing a continuation of strong growth rather than the slowdown that many investors expected, the stock led the S&P 500 for most of the year and turned in a heady 27% rally in the fourth quarter to close out the year. Notably, while Do It Yourself homeowners did indeed shop at Home Depot less than they did during record setting 2020, almost half of the company’s revenue comes from Pro contractors where strong growth continues.”
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) is an American electric vehicle manufacturer, specializing in electric cars, storage batteries, clean energy, and solar panels. Billionaire Elon Musk’s Tesla, Inc. (NASDAQ:TSLA) also offers services including vehicle servicing, charging, insurance, software updates and upgrades, and premium connectivity.
Tesla, Inc. (NASDAQ:TSLA) published its Q4 financial results on January 26, posting earnings per share of $2.54, exceeding estimates by $0.16. Revenue jumped approximately 65% from the prior-year quarter, reaching $17.72 billion, surpassing estimates by $1.08 billion.
Jefferies analyst Philippe Houchois on January 27 observed that Tesla, Inc. (NASDAQ:TSLA)’s Q4 not “only met a fast rising consensus” but also noted that its free cash flow “beat handsomely” and argues that the company’s operating metrics “remain exceptional and a threat to legacy OEMs.” There will however be a lack of new products in 2022, the analyst told investors in a research note. He sees sufficient growth in the Model 3 and Y in 2022 to support estimates and Tesla, Inc. (NASDAQ:TSLA) reaching 2% global share. He maintains a Buy rating on Tesla, Inc. (NASDAQ:TSLA) shares with a $1,400 price target.
Cathie Wood’s ARK Investment Management is one of the largest Tesla, Inc. (NASDAQ:TSLA) stakeholders as of Q3 2021, holding approximately 4 million shares, amounting to over $3 billion. Overall, 60 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA) in the third quarter, with stakes totaling $10.6 billion.
Here is what Alger Spectra Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2021 investor letter:
“Tesla is an electric vehicle (EV) manufacturer with a significant technology lead in its large and rapidly growing addressable market. Tesla is a consequential transportation company because it is setting the pace for industry innovation over the foreseeable future. It has potential to maintain its lead as it ramps up auto production and battery capacity. We are optimistic about EV innovation, adoption and Tesla’s growth prospects. The shares contributed to portfolio performance as Tesla successfully increased production of new model S and X units driving a richer revenue mix as the prices of these vehicles are higher and the cost to produce lower than earlier versions. Earnings estimates climbed for Tesla as pricing for vehicles in the backlog has increased. Further, as Tesla’s newer, more efficient factories increase production, unit costs may potentially decline relative.”
3. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 60
Lowe’s Companies, Inc. (NYSE:LOW) is an American home improvement retailer, operating its retail outlets in the United States and Canada. Headquartered in North Carolina, supplying home appliances, builders hardware, building materials, plumbing accessories, and housewares. Lowe’s Companies, Inc. (NYSE:LOW) announced on December 15 a share buyback program of $13 billion.
On November 12, Lowe’s Companies, Inc. (NYSE:LOW) declared a $0.80 per share quarterly dividend, in line with previous. The dividend will be distributed on February 2, for shareholders of record on January 9.
Baird analyst Peter Benedict kept an Outperform rating and $285 price target on Lowe’s Companies, Inc. (NYSE:LOW) on January 27. The management “struck a positive tone on current demand”, and although risks around rates and labor productivity bear watching, Lowe’s Companies, Inc. (NYSE:LOW)’s FY22 operating plan offers “more upside than downside”, the analyst tells investors in a research note.
In Q3 2021, 60 hedge funds were long Lowe’s Companies, Inc. (NYSE:LOW), with stakes equaling roughly $5 billion. Bill Ackman’s Pershing Square is the largest Lowe’s Companies, Inc. (NYSE:LOW) stakeholder in the third quarter of 2021, with 10.2 million shares worth more than $2 billion.
Here is what Pershing Square Holdings has to say about Lowe’s Companies, Inc. (NYSE:LOW) in its Q2 2021 investor letter:
“Since the onset of the COVID-19 pandemic, Lowe’s has experienced a significant acceleration in demand driven by consumers nesting at home, higher home asset utilization and the reallocation of discretionary spend. In the three years since Marvin Ellison became CEO, the company has executed a multi-year transformation plan to bolster Lowe’s retail fundamentals, reduce structural costs, expand distribution capabilities, and modernize systems and the company’s online capabilities. This transformation has allowed Lowe’s to meet consumers’ needs during this highly elevated period of demand, and positioned the company for continued success and accelerated earnings growth.
In the second quarter, Lowe’s reported U.S. same-store-sales growth of 2.2%. Growth was bolstered by strength from the critical Pro consumer, where Lowe’s reported growth of 21%, off setting moderating do-it-yourself (“DIY”) demand. While DIY demand has receded from peak-COVID-19 periods, Pro customer demand has accelerated as consumers engage Pro’s for larger renovation projects.
Notwithstanding the headline growth figure, which is impacted by comparisons to COVID-19-affected months from spring of 2020, demand remains extremely elevated relative to baseline 2019 levels. July same-store-sales, the most recent full month for which the company has provided disclosure, were up 31.5% on a two-year basis and management indicated August month-to-date results are substantially similar. More significantly, Lowe’s reported Pro growth of +49% on a two-year basis in Q2, evidence that Lowe’s focus on the Pro is bearing fruit. Share gains with the critical Pro customer will provide a tailwind to growth that should allow Lowe’s to outperform market-level growth going forward.
Even as the robust demand experienced during the height of COVID-19 stabilizes at a new base, the medium and longer-term macro environment remain very attractive for the home improvement sector and Lowe’s in particular. This favorable context for the sector is evidenced by consumers’ enhanced focus and appreciation of the importance of the home, higher home asset utilization, rising home prices, historically low mortgage rates, an aging housing stock, strong consumer balance sheets, and the general lack of new housing inventory.
Against this backdrop, Lowe’s is focused on taking market share and expanding margins. Pro penetration today is still only 25% of revenue as compared to Lowe’s medium-term target of 30% to 35%, providing a runway for continued above market growth. Management continues to execute against various operational initiatives (Lowe’s “Perpetual Productivity Improvement” program) designed to improve the customer experience while enhancing the company’s margins and long-term earnings power. The company’s long-term outlook implies significant opportunity for continued margin expansion and earnings appreciation as it executes its business transformation.
Lowe’s Companies, Inc. (NYSE:LOW) currently trades at approximately 17 times forward earnings. Home Depot, its closest competitor, trades at approximately 22 times forward earnings despite Lowe’s superior prospective earnings growth. We find this valuation disparity to be anomalous in light of Lowe’s strong execution and potential for further operational optimization.”
2. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 72
Bank of America Corporation (NYSE:BAC) is based in North Carolina, and it is a financial services company and investment bank that delivers services including asset management, commodities, credit cards, equities trading, insurance, investment management, mutual funds, private equity, and risk management.
On October 20, Bank of America Corporation (NYSE:BAC) declared a $0.21 per share quarterly dividend, in line with previous, which was paid on December 31.
In April, Bank of America Corporation (NYSE:BAC) announced plans to repurchase up to $25 billion in common stock over time. Through the end of the third quarter of 2021, approximately $14 billion in stock had been repurchased under that program.
Bank of America Corporation (NYSE:BAC) published its Q4 results on January 19, posting earnings per share of $0.82, exceeding estimates by $0.06. Revenue for the period jumped 9.14% year-over-year to $22.06 billion, but missed estimates by $131.21 million.
Argus analyst Stephen Biggar raised the price target on Bank of America Corporation (NYSE:BAC) on January 20 to $55 from $50 and kept a Buy rating on the shares after its Q4 earnings beat. Bank of America Corporation (NYSE:BAC)’s net interest margins should begin to improve in 2022 as interest rates start to rise, the analyst tells investors in a research note. He believes that at 14.5-times his expected 2022 EPS, the stock is “attractively valued”.
In Q3 2021, 72 hedge funds were bullish on Bank of America Corporation (NYSE:BAC), with stakes totaling $46.4 billion. Warren Buffett’s Berkshire Hathaway is the biggest Bank of America Corporation (NYSE:BAC) stakeholder as of the third quarter of 2021, holding more than 1 billion shares worth $42.8 billion.
Here is what Oakmark Funds has to say about Bank of America Corporation (NYSE:BAC) in its Q3 2021 investor letter:
“Earlier this year, one of our holdings, Bank of America, announced that it was raising its minimum hourly wage from $15 to $20 and would increase it to $25 by 2025. The company received great press for placing the well-being of its employees above profits. But was it really either/or? Bank of America’s chief human resources officer spoke to the bigger picture: “A core tenet of responsible growth is our commitment to being a great place to work…that includes providing strong pay and competitive benefits to help them and their families, so that we continue to attract and retain the best talent.” Bank of America understood that engaged, high-caliber employees are more productive, less prone to turnover and, therefore, less expensive in the long run. Increasing the pay for employees wasn’t elevating employees above shareholders; it was the right thing to do for employees and for shareholders.
If an increase to $20 was good, why stop there? Why not $50 per hour? Because the benefits the business receives at $50 don’t justify the expense. The bank would no longer be able to price its products competitively and would lose business. The employees would “win” in the short term, but eventually the lost business would lead to job cuts, meaning both employees and shareholders would lose. The negative effects of stakeholder overreach are no different than when CEOs overreach to inflate short-term profits. Both hurt shareholders and stakeholders.”
1. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 74
The Goldman Sachs Group, Inc. (NYSE:GS) is an investment banking company based in New York, offering securities underwriting, asset management, investment management, and prime brokerage, among an array of financial services to customers worldwide.
On January 18, The Goldman Sachs Group, Inc. (NYSE:GS) posted its Q4 earnings. The company reported an EPS of $10.81, missing estimates by $1.12. Revenue for the period came in at $12.64 billion, up 7.65% from the prior-year quarter, exceeding estimates by $508.18 million.
The Goldman Sachs Group, Inc. (NYSE:GS) on January 18 declared a $2.00 per share quarterly dividend, in line with previous. The dividend is payable on March 30, to shareholders of record on March 2.
Citi analyst Keith Horowitz lowered the price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $455 from $480 and kept a Buy rating on the shares on January 20. After a series of large earnings beats, The Goldman Sachs Group, Inc. (NYSE:GS) missed Wall Street estimates in Q4 due to higher expenses, the analyst told investors in a research note. However, the quarter showed the company gaining share across its legacy businesses and signs of progress on new initiatives with strong flows. He sees “strong potential” for upward earnings revisions “plus an attractive valuation” for The Goldman Sachs Group, Inc. (NYSE:GS).
Among the hedge funds monitored by Insider Monkey, 74 funds were long The Goldman Sachs Group, Inc. (NYSE:GS), with stakes totaling $5.45 billion. Eagle Capital Management is the largest stakeholder of The Goldman Sachs Group, Inc. (NYSE:GS), with 3.6 million shares worth $1.38 billion.
Here is what Ariel Investments has to say about The Goldman Sachs Group, Inc. (NYSE:GS) in its Q2 2021 investor letter:
“Goldman Sachs Group Inc. (GS) returned +16.45%. Goldman has posted a series of excellent quarterly results. Merger and equity offering activity has been robust with trading profits bolstered by strong capital market volumes. Goldman’s asset management business has also performed well. Regulators recently moved to allow most large investment banks to return capital to shareholders through dividends and share repurchases. Fundamentally, we think Goldman Sachs is attractively priced at approximately 11 times earnings and a very reasonable multiple of book value.”
You can also take a look at Top 10 Dividend Increases of 2021 and 10 Jim Cramer Stocks to Buy in January.
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Disclosure: None. 10 Stocks to Buy Before Interest Rate Hikes is originally published on Insider Monkey.
