11 Most Profitable Financial Stocks to Invest In

5. The Goldman Sachs Group, Inc. (NYSE:GS)

Net Income (TTM): $16.3 billion

Profit Margin (TTM): 28.9%

Number of Hedge Fund holdings: 75

On January 20, RBC Capital lifted the price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $1,030 from $900 and maintained a Sector Perform rating, citing “robust market conditions” that led to beat results across many of the bank’s businesses. According to the firm, the bank is a “preeminent global investment bank with a leading position in the global markets.”

The Goldman Sachs Group, Inc. (NYSE:GS) has remained the top Global M&A Advisor for the last 20 years, RBC Capital noted, adding that the bank stands among the top investment banks in high-yield and leverage loan portfolios. The firm also highlighted that the bank is well capitalized and has been a “good steward of shareholders’ capital,” with its approximately 46% decline in share count since its peak in the first quarter of 2010.

Four days earlier, Keefe, Bruyette & Woods (KBW) increased the price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $1,000 from $971, while reiterating a Market Perform rating. Christopher McGratty, an analyst at KBW, highlighted that “business momentum is exceptionally strong” in the bank’s investment banking and trading segments.

The Goldman Sachs Group, Inc. (NYSE:GS) is a New York-based financial institution offering a range of financial services. Founded in 1869, the company operates through three segments: Global Banking & Markets, Asset & Wealth Management, and Platform Solutions.