Goldman Sachs stock analysis and earnings preview: will GS hit $1,000?

The Goldman Sachs stock price has rebounded and is moving closer to its all-time high as the company prepares to release its first-quarter results on Monday. GS jumped to $910, a few points below the all-time high of $977. 

Goldman Sachs earnings preview

Goldman Sachs, one of the most prestigious companies in Wall Street, has done well in the past few weeks as investors wait for the first quarter results, which are expected to show resilient growth driven by deal-making and trading.

The most recent results showed that its business thrived in the fourth quarter as companies continued their dealmaking spree and trading revenue jumped.

Its fourth-quarter revenue dropped slightly to $13.45 billion, a decline that was driven by a reduction in its Platform Solutions after the markdown of its Apple Card portfolio. This revenue brought its annual figure to $58 billion, up by 9% YoY.

The Global Banking and Markets division made $41.45 billion last year, up by 18%, with its advisory business continuing growing. Its trading business did well because of the volatility brought by Donald Trump's policies.

Goldman Sachs’ asset and wealth management business made $16.8 billion last year. The company announced provisions for credit losses of $1.1 billion last year, an improvement from the previous $1.35 billion.

Chances are that Goldman Sachs business did well in the first quarter as market volatility continued, leading to more trading opportunities. 

At the same time, corporate deal-making continued, with the most notable ones being the Warner Bros buyout by Paramount, SpaceX purchase of xAI, Devon Energy purchase of Coterra Energy, and McCormick's buyout of Unilever’s food business.

Data compiled by WSJ shows that Goldman Sachs ranks at number one in M&A advisory business this year, advising deals worth over $396 billion. It is followed by Morgan Stanley, JP Morgan, and Citi, which handled deals worth $233 billion, $229 billion, $185 billion.

Goldman Sachs also ranks the highest in terms of the IPO market, where it has advised deals worth over $22.7 billion. It is followed by companies like JP Morgan, Morgan Stanley, and Citi.

Its debt capital market has also seen growth this year, with the volume rising to $142 billion from $115 billion in the same period last year.

These numbers mean that the company’s revenue growth continued in the first quarter, with the average revenue estimate being $16.9 billion, up by 12.4% YoY. Analysts expect its revenue to grow by 9% this year to $63.5 billion.

Analysts will watch for the company’s exposure to the private credit industry, which is showing substantial strains recently.

Goldman Sachs stock price technical analysis

GS stock chart  | Source: TradingView 

The daily timeframe chart shows that the GS stock price has soared in the past few weeks, moving from a low of $778 in March to the current $907.

It has jumped above the 100-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has soared to 65. Also, it remains above the Supertrend indicator.

Therefore, the most likely Goldman Sachs stock price forecast is bullish, with the next level to watch being at $980, its highest point in January this year. A move above that level will point to more gains, potentially to the key resistance level at $1,000.