Goldman Sachs (GS)
The desk's stance
On our research list, not on the slate.
What the company does
The purest Wall Street franchise: #1 in M&A advisory most years, a trading floor that prints in volatile markets, and a fast-growing asset and wealth arm — after retreating from consumer banking and handing the Apple Card portfolio to JPMorgan.
In short: Global investment banking and trading. Category: Tier-1 Global Investment Bank. Sector: Financial Services, Capital Markets.
G-Street Value and Score
G-Street Value: $954.87, computed Oct 18, 2026 (confidence: medium).
How we got there: 50% analyst leg $954.87 (street consensus, after 8% optimism discount) + 50% GainStreet factor value $1385.94 (18.89× fwd EPS anchored to financials multiples) — capped at the analyst leg; factors never out-bull the street. 5 analyst targets have no linked source and are shown but not counted; this value will not open a position until they are sourced.
G-Street Score: 63 out of 100 (Medium).
- Top-line growth & guidance: 20 of 32
- Margin power: 13 of 15
- Revenue visibility & quality: 6 of 11
- Profitability & balance sheet: 16 of 24
- Capital allocation & governance: 3 of 6
- Valuation, sentiment & momentum: 5 of 12
Our current thesis
Updated Oct 14, 2026
The thesis
- Premier investment banking and equities trading franchises consistently capture market share during market rebounds.
- Trades at a modest 12.1x forward P/E, a distinct discount to Morgan Stanley's 13.8x.
- Robust capital return with annualized ROE nearing 19% and $5.00 quarterly cash dividend.
Risks
- Third-quarter revenue softened 8.2% sequentially from peak Q2 levels as FICC activity declined.
- Deal-fee backlog contracted sequentially, indicating ongoing macro uncertainty in closing advisory pipelines.
- Recent break below the 200-day moving average keeps downward technical pressure active.
What we're watching
- Support test around $869 to confirm whether the post-summer correction has stabilized.
- Sustained momentum in equity underwriting and advisory conversion heading into year-end 2026.
Latest
Goldman Sachs reported Q3 2026 revenue of $18.68B (+23% YoY, -8.2% QoQ) and EPS of $17.01, comfortably topping consensus on 72% equities trading growth. Shares have pulled back over 20% from summer highs to $878.72, testing critical technical support around $869 amid sequential FICC normalization. At 12.1x forward P/E, GS trades at an attractive discount to peers Morgan Stanley (13.8x) and JPMorgan (13.2x).
Key numbers
As of Oct 16, 2026: market cap $256.6B · revenue growth +23.3% year over year · gross margin 81.3% · net margin 31.2% · forward P/E 12.0.
On the Gainz Lab maps
Who it does business with
- Goldman Sachs competes with JPMorgan Chase — The league tables. M&A advisory, underwriting, and trading — JPMorgan leads on total fees, Goldman on advisory.
- Goldman Sachs partners with JPMorgan Chase — Apple Card handoff. Goldman’s retreat from consumer lending ends with JPMorgan taking over the Apple Card program — the biggest co-brand portfolio in the market.
- Goldman Sachs competes with Morgan Stanley — The white-shoe rivalry. The two surviving pure Wall Street houses, one built on deals and trading, the other on wealth.
- Goldman Sachs supplies Wall Street Clients — Advisory & markets (about $45.0B a year). Research estimate: the bulk of Goldman’s revenue is investment-banking fees and trading with institutional clients.
In the Daily Brief
Named in 1 edition on 1 day.
- Sep 17, 2026: Powell slapped banks with a hawkish hike, but optical AI hype and our Micron positioning are keeping tech afloat