Financials
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View forensic reportGoldman reports this week with Wall Street trading desks poised for a record $40 billion quarter. At 17.7x earnings with revenue of $125 billion, the question is how much geopolitical volatility is windfall versus warning.
With net income up 20% to $17.2 billion and operating margins at 38.3%, Goldman Sachs enters Q1 reporting season with the Street's cautious consensus looking increasingly stale.
JPM trades at 15x earnings with a diversified franchise. GS trades at 17x as a pure-play investment bank and asset manager. The valuation gap has flipped — and we think GS has the edge.
Goldman Sachs posted $17.2 billion in net income and trades at just 16.8x earnings. The numbers look strong. The business mix concerns me.