Goldman Sachs reported third-quarter results that beat estimates, with net revenues the second highest in the firm's history and return on common equity of 18.7%. Equities revenue rose 72% from a year earlier and asset and wealth management revenue rose 10% from the second quarter, yet the stock traded flat after the report. The bull case points to durable revenues, which have more than doubled since 2020 and made up about 45% of revenue this year. The bear case notes that trading revenue dipped from the prior quarter and that EPS growth is expected to slow from about 39% in 2026 to about 4% in 2027. The consensus rating is Hold, and the stock trades at about 12.3 times forward earnings, a premium of about 14% to its sector's 10.8 times and near its five-year average of about 12.5 times.
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