5 Best Financial Services Stocks to Buy Now

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

Number of Hedge Fund Holders: 74

As per Insider Monkey’s data for Q3, the hedge fund interest is increasing in The Goldman Sachs Group, Inc. (NYSE:GS), as 74 hedge funds tracked by Insider Monkey were bullish on the financial services company, up from 61 in the previous quarter. The total value of these stakes is over $5.4 billion.

Recently, The Goldman Sachs Group, Inc. (NYSE:GS) announced the development of an Amazon-backed cloud computing service for investment firms, which will enhance the management services of the firm. Following the bank’s latest strategic developments, Wall Street analysts presented a positive outlook on the stock. Recently, both RBC Capital and Oppenheimer raised their price targets on The Goldman Sachs Group, Inc. (NYSE:GS) to $435 and $576, respectively.

In its Q3 results, The Goldman Sachs Group, Inc. (NYSE:GS) posted a GAAP EPS of $14.93, beating the estimates by $4.89. The bank’s revenue for the quarter stood at $13.6 billion, up 26.3% from the prior-year quarter.

Ariel Investments mentioned The Goldman Sachs Group, Inc. (NYSE:GS) in its Q2 2021 investor letter. Here is what the firm has to say:

“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.”