GS

- Goldman Sachs earned $17.01 per share on $18.7 billion of revenue, its second-highest quarterly total ever and far above consensus. - Advisory fees hit a record $1.65 billion, while management and other fees reached a record $3.6 billion. - The stock has still fallen 18.4% over three months and trades about 23% below its 52-week high. - The Neos deal, a possible Anthropic IPO and CEO succession planning will shape what comes next. Records usually lift stocks. At Goldman Sachs (GS:NYSE), they barely register right now. The bank reported third-quarter revenue of $18.7 billion, up 23% from a year earlier and its second-best quarter on record. EPS came in at $17.01, crushing estimates, and return on equity reached 18.7%. sec The shares closed Thursday at $891, down 1.5%. They have lost 18.4% over the past three months and sit well below the $1,154 peak. David Solomon offered a clue on the earnings call. Renewed Middle East tensions and energy disruption, he said, had "added complexity to the outlook." bullfincher (Translation: nobody knows how long this deal boom lasts.) Global Banking & Markets did most of the work: - Segment revenue rose 32% to $13.46 billion. - Advisory fees hit a record $1.65 billion, and Goldman kept its top M&A ranking with $1.5 trillion of announced deals this year. - Equities revenue jumped 72%, its second-best quarter after a record Q2. Fixed income was the soft spot, flat at $3.47 billion. The quarter also absorbed an accelerated charitable contribution, which trimmed EPS. Even so, revenue topped the roughly $16.8 billion consensus by about 11%. Quarterly EPS shows how far the earnings base has moved… Q3 fell short of the $20.98 Q2 record, yet it still landed about 39% above the year-ago quarter. The quieter story sits in Asset & Wealth Management. Revenue rose 14% to $5.05 billion, and assets under supervision hit a record $4.1 trillion after $97 billion of long-term inflows, the 35th straight quarter of net inflows. benzinga Those fees matter because they hold up when trading cools. Management and other fees rose 22% to $3.6 billion and have topped $10 billion year to date. Goldman is buying more of that stability. It agreed to acquire ETF provider Neos for $2.3 billion, and it is pitching permanent capital vehicles to private equity clients alongside Evercore (EVR:NYSE). The deal pipeline helps too. Goldman and Morgan Stanley (MS:NYSE) are lined up to lead Anthropic's potential IPO, an offering that could value the company at as much as $2 trillion. Trading grabs the headlines, yet this is the line that steadies earnings. AWM produced about 27% of Q3 revenue, a cushion Goldman lacked in past cycles. TIKR tracks 26 analysts on Goldman Sachs. How many say "Buy"? See the full breakdown of Buy, Hold, and Sell ratings on Goldman Sachs, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Goldman Sachs' Analyst Ratings The market is paying less for this earnings stream than it did in the summer. Goldman trades at 12.4x forward earnings and 2.39x book value. Morgan Stanley, with a bigger wealth arm, trades at 13.8x and 2.71x. That gap looks hard to justify on returns. Goldman's 17.8% trailing ROE is stronger, and analysts expect its EPS to grow about 20% a year over the next two years, against 15.5% at Morgan Stanley. How much has the multiple compressed? Goldman's discount to Morgan Stanley persists even as its returns run higher. The risks are real. Trading volatility cuts both ways, and technology spending stays elevated. Succession adds another variable, since the board has discussed naming John Waldron CEO with Solomon moving to executive chairman, although Goldman says there is no set timeline. My take: I think the selloff reflects cycle fear more than anything Goldman did wrong. A 12.4x multiple for a firm earning nearly 19% on equity already prices in a sharp slowdown. Equities and advisory revenue can fall fast, but the fee base is now big enough to soften the hit, and the $1,037 average price target implies about 16% upside. The Q4 report in mid-January is the next checkpoint. It will show whether the record advisory backlog converts into closed deals or slips into 2027. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what Goldman Sachs could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Value GS for free.

- JPMorgan raised its dividend 10% to $1.65 per quarter while Wells Fargo's 11% raise delivers the highest yield of the three at 2.47%. - Goldman Sachs raised its dividend twice this year, lifting the quarterly payout 25% to $5 while holding its payout ratio below 30%. - All three banks keep more than 70% of earnings after dividends, giving each room to sustain raises through an economic slowdown. - Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor) Dividend investors usually have to pick between a dividend that grows fast and one that is well covered by earnings. However, three of the biggest U.S. banks are offering both right now. JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC) and Goldman Sachs (NYSE:GS) each raised their quarterly payouts by double digits this year, and none of them pays out more than 29.6% of third-quarter earnings per share. That leaves most of each bank's profit in reserve to fund buybacks, absorb losses on bad loans and pay for the next raise. For a bank, earnings and regulatory capital do the job that free cash flow does at an industrial company, so coverage and capital buffers are the safety checks that count for income investors. JPMorgan raised its quarterly dividend to $1.65 per share from $1.50, a 10% increase. That works out to an annualized $6.60 per share. At a share price around $338.87 on Tuesday, Oct. 20, the yield comes to about 1.97%. That is a growth-focused yield, so the income case here rests on how quickly the payout grows and how secure it is. ------ Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years. That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here › ------ Coverage is strong. The new $1.65 quarterly dividend matches 29.6% of third-quarter EPS of $5.57. The bank earned $15.3 billion in net income for the quarter and ended it with a standardized CET1 ratio of 13.9%. The chief executive estimated excess capital at roughly $30 billion, adding, "that's plenty." The dividend record supports that confidence. The quarterly payout was 44 cents in early 2016. In 2025 it went from $1.25 to $1.40 and then to $1.50, and this year's increase makes three raises in under two years. Management also put the dividend first in its capital priorities, calling the payout as the commitment that comes "after you pay your dividend, which hopefully will be steady." Buybacks are still running, though they have slowed. JPMorgan's net share repurchases came to $664 million in the third quarter, compared with total repurchases of $6.703 billion in the second quarter. The bank said it reduced share repurchases this quarter because it is putting that capital into lending and growth initiatives where it expects high returns. For dividend holders, that means the money is going into earnings growth that should support future raises. The board also authorized a new $50 billion repurchase program, so buybacks can pick up again when lending opportunities slow. Bull case: The optimistic thesis is straightforward. The largest U.S. bank is valued at roughly 14x trailing earnings, keeps more than 70% of its profit after paying the dividend, and has room in its capital base to keep raising the payout. Risk to keep in mind: Current earnings are being helped by unusually good conditions. The chief executive said a 17% return on tangible common equity is the through-cycle goal, compared with 20% last quarter, and noted "times are pretty good now with high volume and high asset prices and fairly low credit losses." The quarter was also a rare profit miss. If returns fall back to normal levels, the payout ratio will rise even if the dividend remains flat. Wells Fargo raised its quarterly dividend to 50 cents per share from 45 cents, an 11% increase. That works out to $2 a year. With the shares around $82.33 on Oct. 20, the yield is about 2.47%, the highest of the three stocks on today's list. Part of the reason is price: WFC is only up 4.11% year to date, so new buyers get more income per dollar invested. Coverage is the strongest in this group. The 50-cent dividend matches 26.7% of third-quarter EPS of $1.87, and EPS rose 13% from a year earlier. Credit quality held up, with net loan charge-offs at 38 basis points of average loans. The finance chief said there are "no signs of broad-based credit deterioration." He also said quarterly earnings power of about $6 billion, after dividends, adds roughly 30 basis points to CET1 each quarter. In plain terms, the dividend is paid from earnings and still leaves capital to spare. Income investors should know the full history. Wells Fargo cut its quarterly dividend from 51 cents to 10 cents in 2020. It has rebuilt the payout steadily since then, through 20 cents, 30 cents and 40 cents to today's 50 cents. That puts the dividend almost back to where it was before the cut. Buybacks are larger here than at JPMorgan. Wells Fargo bought back $2.5 billion of stock in the third quarter, after about $7 billion in the first half. A shrinking share count means each remaining share gets a bigger piece of earnings, which supports future dividend growth. Bull case: The optimistic thesis centers on returns. Third-quarter ROTCE was 16.3%, and the chief executive said it "continues to increase and is getting closer to our 17% to 18% target." Proposed Basel III changes could cut risk-weighted assets by about 7%, which would free up capital. The stock is valued at roughly 12 times trailing earnings, the lowest multiple of the three. Risk to keep in mind: Wells Fargo has the smallest capital cushion of the three bank stocks on this list. Its CET1 ratio was 10%, at the bottom of its 10% to 10.5% target range, against a regulatory minimum plus buffers of 8.5%. Buybacks would be the first thing cut if capital tightens. The dividend would come after that. Goldman is classified as a capital markets company rather than a diversified bank, but its dividend math looks a lot like the other two. The quarterly dividend rose to $5.00 from $4.50, an 11% increase, for an annualized $20.00 per share. With the shares around $880.71 on Oct. 20, the yield is about 2.28%. The stock fell 8.2% over the past month, which drove the yield higher. This is actually Goldman's second raise of the year. The payout went from $4 to $4.50 earlier this year before the latest increase. The finance chief calling the trend directly: "It's obviously up 25% year over year. It's now $5 a share. It was $4 a year ago. Five years ago, it was $2 a share." Coverage is solid even on a quarter that included one-time costs. The $5 dividend matches 29.4% of Q3 EPS of $17.01. That EPS figure already includes a charitable contribution that cut earnings by about $1 per share. Goldman ended the quarter with a CET1 ratio of 12.4% against a 11.4% requirement, and year-to-date return on tangible equity reached 22.4%. Buybacks are larger than the dividend. Goldman bought back $3 billion of stock in the third quarter and paid $1.5 billion in dividends. Management places dividend growth just behind investing in the business: "We do expect to continue to invest in the sustainable growth of our dividend." Bull case: Goldman's earnings are becoming more stable. The chief executive said the firm's more durable revenue now makes up "approximately 45% of revenues for the year to date," and assets under supervision reached $4.1 trillion. Those recurring fees help support the dividend in years when deal-making slows. Risk to keep in mind: The rest of Goldman's earnings still depend heavily on trading and deal activity. The investment banking backlog decreased from the prior quarter, and the stock's beta of 1.284 is the highest of the three. A slowdown in capital markets would hit Goldman's EPS harder than the others, which would drove its payout ratio up quickest. JPMorgan, Wells Fargo and Goldman each raised their dividends by 10% or more while paying out less than 30% of quarterly earnings, and each kept buying back stock at the same time. Wells Fargo has the highest yield and the lowest payout ratio. JPMorgan has the most excess capital. Goldman has grown its dividend the quickest. All three pay their dividends first and have plenty of earnings left over, which is why their payouts can keep growing through an economic slowdown. (Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here › Contact [email protected] for any questions or corrections.

Investing.com -- Goldman Sachs has identified its top picks in Japan's semiconductor sector, with analysts expecting strong upward revisions to earnings guidance across multiple companies. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » The investment bank maintains "buy" ratings on all eight stocks in its coverage, citing improving fundamentals driven by capacity utilization increases, mix improvements, and stabilizing prices. The firm anticipates that upcoming half-year results will confirm solid earnings trends and provide greater visibility into fiscal year 2027 performance across the sector. Goldman Sachs expects a second upward revision to full-year guidance at half-year results. The firm sees further earnings potential driven by utilization rate increases, mix improvements, and price stabilization for MLCCs. President Norio Nakajima stated at CEATEC on October 13 that the BB ratio for MLCCs in July-September was just under 1.5 times, roughly matching the previous quarter. Details on additional capacity expansion are expected at the half-year results announcement. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » Goldman Sachs anticipates a significant upward revision to full-year guidance at half-year results. The firm expects solid earnings trends driven by mix improvements, including a higher pack ratio in batteries. Positive factors include future expectations for BBUs contributing to revenue from the second half, rapid earnings recovery in HDD-related businesses, and profit improvements in passive components. The focus is on the next medium-term plan starting from fiscal year 2027. Goldman Sachs expects full-year guidance to remain roughly unchanged at half-year results following a significant upward revision after first quarter results. However, the company is in a phase where utilization rates are rapidly rising while MLCC prices stabilize. The firm expects earnings to expand rapidly from first quarter to second quarter, with potential for major valuation improvement if sharp earnings improvement is confirmed. Goldman Sachs expects third quarter calendar year results to exceed company guidance, with revenue continuing steady quarter-over-quarter increases into the fourth quarter. The firm believes the stock's valuation could improve rapidly if earnings levels in third quarter and fourth quarter exceed consensus and earnings momentum increases in first half 2027. Goldman Sachs expects a significant upward revision to full-year guidance at half-year results. The business environment is improving following the end of inventory adjustments, with higher sales and production likely to deliver stronger-than-expected earnings leverage. Inquiries for Si and SiC to AI and data centerapplications are very strong. Original Article Goldman Sachs bets on these 8 Japanese chip stocks as earnings upgrades loom This is the single-biggest obstacle to a SpaceX-Tesla merger: JPMorgan Global chip stocks rally as Super Micro forecast revives AI demand optimism

The Goldman Sachs Group (NYSE:GS) recently reported its third-quarter results and beat estimates. The stock ranks fifth on our list of the top 10 common stock picks of billionaire Ken Fisher and Jim Cramer. The results were strong, so is the stock a buy after the report? Let's analyze. Goldman has beaten earnings estimates in each of the last four quarters. Management said net revenues were the second highest in the firm's history. Return on common equity was 18.7%. Equities revenue rose 72% from a year earlier, and asset and wealth management revenue rose 10% from the second quarter. Even so, the stock traded flat after the report. Goldman also invests its own money, and its 13F filing earlier this year showed it added to Micron and Amazon in the second quarter. See the full breakdown. Goldman has a steadier earnings base than it used to, so a slow stretch in dealmaking hurts less. Management said on the earnings call that durable revenues have more than doubled since its 2020 investor day and made up about 45% of revenue so far this year. These are revenues such as management fees and financing, which do not swing as much as trading and deal fees. Goldman also keeps a strong position in the work that drives its biggest fees. Carillon Eagle Growth & Income Fund said in its investor letter that Goldman has one of the strongest M&A advisory businesses in the world and that more deals and public offerings lift its results. Check the full letter here. If deal activity keeps recovering, Goldman has a large and growing base of steady income to build on. Goldman's results still depend on capital markets, and those can turn quickly. Trading revenue dipped from the prior quarter in the third quarter. Dealmaking was also uneven across the industry, since JPMorgan and Wells Fargo both reported weaker investment banking in the same season. Growth is also set to slow. Analysts expect earnings per share to grow about 39% in 2026 and only about 4% in 2027. They expect sales growth of about 25% in 2026 and about 1.4% in 2027. After a year like this one, the next year has a hard comparison. Wall Street's consensus rating on the stock is Hold, and a quant score also rates it Hold. Goldman trades at about 12.3 times forward earnings. The typical stock in its sector trades at about 10.8 times, so Goldman carries a premium of about 14%. Goldman's own five-year average is about 12.5 times, so the stock sits about where it usually does. Growth explains why investors pay more than the sector. Analysts expect earnings per share to grow about 39% in 2026. The forward PEG ratio, which divides the P/E by expected growth, is 0.80 against a sector median of 1.03, so Goldman costs less per point of growth than the typical stock in its sector. Next year looks different. Analysts expect earnings growth to slow to about 4% in 2027, and at that pace the stock would look much more expensive on the same measure. While we acknowledge the risk and potential of GS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GS and that has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy Disclosure: None. Follow Insider Monkey on Google News. Tags:

- Interested in SPDR S&P Bank ETF? Here are five stocks we like better. - Third-quarter bank earnings are giving investors a closer look at the financial sector's strengths and weaknesses. - Banking ETFs offer a way to invest in the industry without choosing individual bank stocks. - The SPDR S&P Bank ETF and iShares U.S. Regional Banks ETF offer different ways to capitalize on banking trends. Bank earnings season is here, with major U.S. financial institutions like JPMorgan Chase (NYSE: JPM) and Goldman Sachs (NYSE: GS) offering mixed results for Q3 2026. JPMorgan posted an unusual miss to adjusted earnings per share (EPS), even while net revenue rose more than 8% year over year (YOY). Goldman, on the other hand, easily beat analyst estimates for both top and bottom lines thanks to the healthy equities trading. With other major and smaller regional banks providing earnings updates to come, investors have an opportunity to take different approaches to betting on the broader banking industry as a whole with exchange-traded funds like the State Street SPDR S&P Bank ETF (NYSEARCA: KBE) and the iShares U.S. Regional Banks ETF (NYSEARCA: IAT). If investors anticipate additional divergence in Q3 results among bank stocks, these funds may help mitigate risk while still offering broad exposure to the space. Still, they are very different from one another and may thrive in different conditions. → Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out? KBE tends to offer broader access across the banking industry, following an index of bank stocks of different sizes and structures. Notably, it uses a modified equal-weight approach that gives smaller banks a huge leg up relative to their impact in a market-cap-weighted portfolio. By contrast, IAT is a U.S. regional bank fund with a portfolio weighted by market capitalization. This means that larger regional institutions will have the greatest impact on the fund's performance. → Bank of America Stock Sell-Off Looks Like a Buying Opportunity Both funds do more than just offer access to the largest financial institutions available to investors, and they have different levels of risk. KBE, for instance, has about 109 holdings, more than triple the number in IAT's basket. This also comes with greater diversification across bank sizes and business types, and over-concentration is not a concern given KBE's equal-weight allocation approach. IAT, on the other hand, is a fairly narrow play on a smaller set of specific types of banks, with two in particular—U.S. Bancorp (NYSE: USB) and PNC Financial Services Group (NYSE: PNC)—dominating, each with about 15% of the total portfolio allocation. → Palantir's Potential Next Catalyst After Retail Profit-Taking KBE's wider exposure to bank stocks and sub-industries may make it a winner if there is an uneven recovery across the sector. If interest rates fall, KBE could benefit if conditions begin to support additional lending and a broader soft landing. IAT could outperform KBE if some of its specific holdings see a rally, or if there is a regional-bank recovery that affects multiple positions. If funding costs stabilize and concerns about commercial real estate fade, for example, it may give investors more confidence in regional lenders, which in turn may boost IAT. This fund could also benefit from falling interest rates if deposit costs decline faster than asset yields. Both funds are likely to do well during a period of broad economic expansion, but are more vulnerable in the event of a recession or banking crisis. In this latter case, though, KBE may be better positioned if this weakness is concentrated across regional banks. As earnings season continues, investors should pay attention to both deposit trends and credit quality. Delinquency rates, net charge-offs, loan-loss provisions, and other metrics can provide a fuller picture of whether a bank is facing increased pressure from borrowers. Deteriorating credit quality could be a negative for both of these ETFs. Valuations are also an important consideration. If one set of banks appears to be pricing in a stronger recovery, for example, this may expose one or the other of these funds to greater downside risk if earnings disappoint. KBE's equal-weight approach means it may be less susceptible to being swayed by individual stocks—but this can be a bad thing if shares trend upward, just as it can help minimize declines in the opposite scenario. Both funds trade for about the same expense ratio (0.35% for KBE and 0.37% for IAT). KBE is the larger and more heavily traded of the two funds, although neither is likely to present significant liquidity concerns for most traders. At the same time, these ETFs have not distinguished themselves from one another in terms of performance this year—both are up only 1%-2% year to date (YTD). For investors interested in the banking space, the decision may come down to the weighting of the two funds and their different sub-industry focuses. The article "Bank Earnings Are Mixed—These 2 ETFs Offer Very Different Paths to a Recovery" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

- Goldman Sachs Group reported third quarter 2026 net income of US$5,294 million, up from US$4,098 million a year earlier, with results helped by strong equities trading, higher investment banking fees and over US$5 billion in asset and wealth management revenue. - The bank's equities unit delivered a 72% surge in net revenues and record advisory fees, while alternative investment fees reached US$860 million, highlighting how fee based and trading heavy businesses are shaping Goldman Sachs Group's earnings mix. - We will look at how Goldman Sachs Group's investment narrative shifts as exceptional equities trading performance feeds into this earnings beat. Scan how Goldman Sachs Group's earnings, buybacks and fresh bond issuance compare across large financials by running the curated list of solid balance sheet and fundamentals (25 results) as your next filter. To own Goldman Sachs Group, you need to believe the firm can keep tilting toward fee based advisory, financing and asset and wealth management while holding the line on costs. The big near term swing factor is whether strong equities trading and record advisory pipelines translate into steadier earnings as tech and AI spending runs hotter. The main risk right now sits on the cost and balance sheet side. Management flagged non compensation expenses running higher and the supplementary leverage ratio already moved down to 4.3%. Recent bond issuance does not change that picture in a major way, but it does add another data point on how Goldman Sachs Group funds growth. The cluster of new fixed income offerings, including the 5.65% Notes due 2033 and 5.25% Notes due 2029, is the most relevant fresh headline for equity holders here. These issues add to Goldman Sachs Group's borrowing stack and give the firm more term funding to back Global Banking & Markets and financing activity. For you, the read across is about execution and risk. A heavier bond program increases gross debt, while buybacks and a US$5.00 quarterly dividend distribute capital to shareholders. With the supplementary leverage ratio already tighter and non deposit funding the norm, the balance between raising funds, supporting AI and data center related financing, and preserving flexibility remains central to the Goldman Sachs Group story. Goldman Sachs Group's narrative projects US$72.4b revenue and US$21.1b earnings by 2029. This assumes 2.3% yearly revenue growth and about a US$1.1b earnings increase from US$20.0b today. Uncover how Goldman Sachs Group's fair value indicates a 25% potential upside to its current price before the discount narrows. Some of the most optimistic analysts on Goldman Sachs Group frame the surge in AI driven automation as the key upside catalyst. Before this earnings beat and the new bond run, they were penciling in about US$79.9b of 2029 revenue and US$24.7b of earnings. That is a much richer story than the baseline view. Treat it as one possible path and compare several narratives before you decide how this fresh round of funding and trading results might shift your own expectations. Explore 4 other Goldman Sachs Group fair value estimates, including one that suggests the potential for 30% upside from the current price! Don't just follow the ticker. Dig into the data and build a conviction that's truly your own. - A great starting point for your Goldman Sachs Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. - See our latest analysis for Goldman Sachs Group. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Goldman Sachs Group's overall financial health at a glance. Once you have a view on Goldman Sachs Group, it can help to compare that thesis against other businesses with very different profiles. Use the Simply Wall St Screener to scan across sectors and risk levels so you can see where Goldman Sachs Group fits in your broader watchlist. - If income steadiness matters to you, start by reviewing a set of higher yielding payers through the 7 dividend fortresses to see which ones match your tolerance for risk. - If value is your priority, line up candidates trading below estimated worth and compare their balance sheets using the 33 high quality undervalued stocks as a short list to investigate further. - If you care most about resilience, filter for businesses with stronger financial footing and lower risk scores by running the 32 resilient stocks with low risk scores as your next screen. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- Interested in The Goldman Sachs Group, Inc.? Here are five stocks we like better. - Wells Fargo, Goldman Sachs, and Citigroup released third-quarter 2026 results on Oct. 13 amid uncertainty following the Federal Reserve's latest rate hike. - Despite management expressing optimism and strong headline numbers, including Goldman's record advisory fees and Citigroup's decade-high Q3 revenue, investor reaction was largely negative. - Forward-looking guidance drove the sell-off, as Wells Fargo kept its NII forecast flat and Citigroup warned of a potential 20% drop in Markets revenue next quarter. It's earnings season in the finance sector, and many banks are reporting earnings for the first time since the Federal Reserve's first interest rate hike since 2023. The hike was unanimous at 12-0, but the next move is anything but certain as we head into Q4. That uncertainty is weighing on banks as they report Q3 results this week, and on Oct. 13 we got results from Wells Fargo & Co. (NYSE: WFC), The Goldman Sachs Group Inc. (NYSE: GS), and Citigroup Inc. (NYSE: C). Although the rate cut came too late to affect Q3 results, it still forces banks to update their outlooks, and their guidance and projections can offer investors clues. Management at all three banks expressed optimism, but the market's response to the results told the real story. → Don't Get NVIDIA's Reflection AI Interest Wrong: Its Moat Could Deepen Wells Fargo is the most deposit-focused of the three, and it's expected to benefit most in a rising-rate environment. But investors looking for optimistic guidance probably weren't thrilled with management's full-year projections. The company reported its fiscal Q3 2026 results before the market opened and posted a slight beat on earnings per share (EPS), but revenue missed and rose only 2% year over year (YOY). Net interest income (NII) rose 5% YOY to $12.52 billion, and CFO Mike Santomassimo explicitly cited the rate environment as a net positive for the company heading into Q4. But despite the positive commentary, management projects $13 billion in NII for Q4 and left its full-year 2026 NII projection unchanged at $50 billion. The Q4 figure would represent 4% sequential growth, but Santomassimo noted that Markets NII is liability-sensitive, which could offset some fee growth in Q4. And while NII growth was strong, net interest margin was flat sequentially at 2.43%. → Tesla Wants to Make Its Own Chips—What Could Go Wrong? Wells Fargo's core revenue streams likely make it a winner in a high-rate environment, but the market didn't respond well to management's "just trust me" guidance heading into Q4. The stock ended the day down 3%, but the price rejection at the 200-day moving average could have a longer impact. With the company saying rate benefits are basically punted into 2027, investors see a shaky road ahead for WFC shares, and the Relative Strength Index (RSI) staying under 50 suggests buyers are starting to thin out. → Birkenstock's Strong Growth Creates a Buying Opportunity High rates don't affect every bank equally. Wells Fargo expects rising rates to be a net positive since it earns more interest from loans. But what about banking activity that high rates hurt, like mergers and acquisitions? A dealmaking slowdown was the biggest concern heading into the Goldman Sachs report, but those fears proved largely unfounded. In fiscal Q3 2026, the company reported revenue of $18.68 billion, the second-highest figure on record and 23% higher than the same period a year ago. EPS of $17.01 also shattered the consensus expectation of $12.86 and exceeded $18 per share when charitable contributions were excluded. Investment banking fees rose 21% YOY to $3.22 billion, and advisory fees hit a record $1.65 billion. But the dealmaking engine keeps churning, and this optimism likely helped the stock outperform peers who also reported on Oct. 13. CEO David Solomon noted that Q3 started with dealmaking activity at a five-year high and remains robust despite a late-quarter slowdown that pushed back several high-profile IPOs. The company has announced more than $1.5 trillion in M&A so far in 2026, which is more than $400 billion above the next closest competitor. Rate volatility could still impact dealmaking in future quarters, but today's deal flow remains strong. GS shares started the day up nearly 5% before giving back all its gains at then some and closing down 0.17%. This is the best performance of the three, but it's notable given Goldman's strong earnings relative to the two deposit banks. Despite the RSI hitting extremely oversold levels, the stock's decline below the 50-day and 200-day moving averages dampens short-term momentum, and the market needs more rate clarity before this trend can reverse. Citigroup could be considered the hedge between Wells Fargo and Goldman Sachs. The bank should benefit from higher rates through NII growth, but trading fees should also grow with market indices near all-time highs. In fiscal Q3 2026, both engines appear to be working. Citigroup reported its highest Q3 revenue in more than a decade at $23.85 billion, up 8% YOY. NII ex-Markets grew 7% YOY to $13.71 billion, while Markets grew 6% and Investment Banking grew 9%. Management also raised its full-year 2026 NII ex-Markets guidance to mid-to-high 6%, up from the 5% to 6% range it projected earlier in the year. Citigroup raised NII projections while Wells Fargo left them flat. So why did Citigroup's stock get punished more that day? The answer lies further in the guidance. CFO Gonzalo Luchetti expects Q4 Markets revenue to decline 20%, "or possibly more," from Q3, and U.S. Consumer Card revenue was flat during the period. Luchetti says the guidance could be conservative, but the market disliked the news, and the stock fell sharply during the day, closing down more than 5.5%. Despite the poor earnings reaction, C stock still has the most promising chart. The stock closed right at the 200-day moving average, keeping the long-term trend pointing in the right direction for now. However, the RSI is trending down, and investors are likely pricing in a quiet Q4 ahead of the next rate move. The article "Big Banks Report Strong Earnings—So Why Are Shares Falling?" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

- ASML beat EPS by 36% and Goldman grew earnings 39%, yet both stocks fell sharply as P/E compression, not results, drove the selloffs. - Jim Cramer says money is rotating from AI hardware into enterprise software, whose stocks never faced the AI disruption investors long feared. - Jim Bianco warns 41 AI companies now hold nearly 49% of S&P 500 market cap, masking steep individual stock de-ratings beneath a calm index. - Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and JPMorgan Chase didn't make the cut. Enter your email to see the names that beat JPM. The report is free. Enter your email and see if any of your stocks made the cut. ASML (NASDAQ:ASML) reported third-quarter results on October 14, 2026, that beat forecasts on every major line. GAAP EPS of $14.48 exceeded the $10.66 consensus, and revenue rose 55.2% year over year to $13.1 billion. The stock fell 3.9% that day and has lost 6.8% over the past week. Even after that drop, shares at $1,650.00 are still up 53.9% for the year. Goldman Sachs (NYSE:GS) shows the same pattern. Its EPS of $17.01 beat the $13.65 consensus, and revenue of $18.7 billion was the firm's second-highest quarterly total. On CNBC's Mad Money, Jim Cramer pointed to 39% earnings growth. The shares now trade at $878.72, down 11.1% in a month, and are essentially flat year to date. Both businesses are performing well. The price investors will pay for that performance is what has changed. On October 14's Mad Money, Cramer described the move this way: "P/E compression explains this move, not earnings." On ASML specifically: "The earnings aren't being crushed. In fact, semiconductor capital equipment maker ASML reported fantastic [numbers] last night. Yet its stock was slammed." He added, "I think we're seeing a reset and one that simply can't be gamed." ------ Free Report, Just Released Why Didn't JPM Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And JPM didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → ------ The chip equipment maker's guidance makes the correction easier to see. In the 6-K filing, management said planned supply for 2027 and 2028 will not fully meet customer demand, and that some customers want to place orders for 2029 and even 2030. Even so, investors assigned a lower multiple to that demand visibility this week. JPMorgan Chase (NYSE:JPM) reported EPS of $5.57 on revenue of $50.9 billion, which Reuters called a rare profit miss. Cramer found the net interest income outlook unusually positive and said CEO Jamie Dimon "didn't hit us with his usual dose of doom and gloom. For once the conference call wasn't a minefield." The stock is up 4.1% year to date. CFO Jeremy Barnum still noted that "evolving market conditions have recently slowed activity a bit." In Goldman CEO David Solomon's on-camera remarks on October 13, 2026, he called AI infrastructure activity "a really good ballast for capital markets activity on a go-forward basis," while warning that bumps can still happen. Addressing the earnings call that day, he said, "there will be a point in time when this recalibrates, resets, for sure." So the chief executive is describing a positive environment while Goldman's shares reprice lower. That disconnect suggests investors are questioning how long these peak conditions will last. In an October 11, 2026, X post, Jim Bianco of Bianco Research described the S&P 500 as two separate markets: AI-related companies and everybody else. Bianco said the 41 AI-related companies he tracks accounted for 48.68% of the index's combined market capitalization. With so much weight concentrated in one group, the index can appear calm while individual stocks such as ASML and Goldman are heavily de-rated beneath the surface. (Riding a concentrated rally is fine as long as you plan the exit, which is the whole subject of our free bubble survivor's handbook.) Cramer has a clear view on the rotation. He believes money is moving out of AI hardware and into enterprise software, because the AI-driven destruction investors feared for those companies never arrived. On October 14, 2026, he said: "The enterprise software companies can keep going higher because their stocks never should have been so low in the first place. After a year where we expected these companies to be destroyed by AI, it never came to pass and never will." Looking ahead, at Goldman, the investment banking backlog declined from the prior quarter. JPMorgan has guided fourth-quarter expenses to about $27.5 billion. ASML plans to update its longer-term outlook at its Capital Markets Day on June 10, 2027. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And JPM wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->> Contact [email protected] for any questions or corrections.

Concerned about an AI bubble? Sign up for The Daily Upside for smart and actionable market news, built for investors. There's always money in the wealth division. Despite some clouds hanging over the economy — rising oil prices, a $40 trillion national debt, mounting trade tensions and a Big Mac costing $6 (Stop us, we're spiraling!) — Wall Street's biggest banks and investment managers have reported solid third-quarter results, with wealth management being a big part of that. And it's not just rising markets and higher fees. Firms are making strategic moves to attract clients and boost asset flows, with alternative investments emerging as a growth driver for some wealth divisions. Sign up for The Daily Upside at no cost for premium analysis on all your favorite stocks. READ ALSO: Credentials Essential: Advisors with Extra Letters Get More Referrals and It's Not Easy Being Green in the Era of AI Goldman Sachs reported more than $5 billion in revenue for its asset and wealth management division, up 14% year over year. The results reflected significantly higher management and incentive fees, along with higher assets under supervision. Fees from alternative investments reached $860 million, up 43% year over year. Alternative investment assets under supervision also climbed $32 billion to a record $491 billion. "They have an incredible ability to leverage their institutional side to deliver top-tier alternative products to ultra-high-net-worth families," said Gabriel Shahin, CEO of Falcon Wealth Planning. Wells Fargo reported $603 million in net income from its wealth and investment management unit, up 19% from a year earlier. CEO Charlie Scharf said on the earnings call that the bank had increased alternative product offerings on its platform by 30% this year. "Clients are hungry for yield and noncorrelated returns," Shahin said. "Private credit and structured products are grabbing a lot of mindshare." Here's a quick look at other results from this week: - Morgan Stanley reported record wealth management revenue of $9.1 billion and $232 billion in net new assets. - Bank of America reported $7.1 billion in revenue from its global wealth unit, which includes Merrill Lynch, with $20 billion in quarterly AUM flows. Citigroup's wealth division had a banger of a quarter, reporting $585 million in net income, up 93% year over year. Client investment assets rose 15% to $759 billion. "Citi is a behemoth, but in the wealth management space, they're the little guy relative to JPMorgan and Wells Fargo," said Edison Byzyka, CIO at Credent Wealth Management. A few years ago, Citi's wealth division faced multiple headaches including executive turnover and questions about its ability to capture more of its clients' wealth. "It was a kind of organized chaos for a time at Citi, and it looks like that ship has definitely turned around," Byzyka said. Missed It by That Much. In a rare miss, JPMorgan Chase, America's largest bank, fell short of analysts' overall earnings expectations. Its asset and wealth division, however, reported $1.8 billion in net income, up 11% year over year. AUM reached $5.2 trillion, up 13%. And client asset flows were strong, hitting $263 billion. "When you get as big as JPMorgan and you can still generate that much in net inflows, it's really quite impressive," Byzyka said. This post first appeared on The Daily Upside. To receive financial advisor news, market insights, and practice management essentials, subscribe to our free Advisor Upside newsletter.

For Wall Street banks reporting earnings this week, it was largely a hit—or, for two big names, a stunning miss. Goldman Sachs gave investors exactly what they wanted, while JPMorgan Chase and Bank of America gave them reason to flinch. JPMorgan set the tone early Tuesday morning. For the first time in nearly three years, the nation's largest bank by assets and market capitalization—about $888.1 billion—fell short of expectations on both profit and revenue. JPMorgan reported $50.17 billion in net revenue, below the $51.22 billion analysts expected. Earnings per share came in at $5.57 versus $5.90, according to S&P Global Market Intelligence. The company's earnings were weighed down by a slump in fixed-income trading and higher expenses. Fixed-income trading revenue fell 4% year over year to $5.4 billion—about $550 million below expectations. JPMorgan's noninterest expenses were $90 million higher than estimates as costs jumped 12% over the past year. All in, revenue rose by only 8%, a significant decline from the 27% increase in the second quarter. Still, JPMorgan CEO Jamie Dimon said in a statement that the bank reported "another quarter of strong results." He did not directly address the earnings miss, but said investment banking activity "moderate[d] somewhat during the quarter." On a call with reporters, JPMorgan CFO Jeremy Barnum described the bank's dealmaking pipeline as "very, very strong." JPMorgan was not the only bank to disappoint investors, though.  Bank of America missed earnings expectations on Wednesday, snapping a six-quarter beat streak. Profit fell 17% to $6.93 billion, or 91 cents per share, in the third quarter. Revenue was also below analysts' estimates by roughly $570 million. The results came just a day after regulators announced a $1.2 billion penalty on Bank of America, alleging that management failed to report billions of dollars in suspicious transactions. The penalty added to the pressure of an already lackluster quarter.  One other laggard—albeit less surprising than JPMorgan or Bank of America—was Wells Fargo. The bank missed on revenue despite surpassing earnings estimates, reporting revenue of $21.87 billion, below the $22.31 billion consensus. It was the third time in the past four quarters that Wells came up short on the top line. Then there was Goldman Sachs' blowout quarter.  On Tuesday, Goldman reported its second-highest quarterly net revenue ever at $18.68 billion and earnings per share of $17.01 for the third quarter, far exceeding expectations of $16.71 billion and $13.02, respectively. The equities business was the star of the show, with revenue surging 72%. CEO David Solomon described the quarter as a "very strong performance" for Goldman.  It might seem surprising that Goldman had such a strong quarter compared with JPMorgan. They are both premier dealmakers that compete for share in M&A and IPOs. But JPMorgan's business mix is much broader than Goldman's. So although Goldman saw some weakness in fixed income, the bank was able to offset it because of its enormous—and booming—equities desk. Other solid performers this week included Morgan Stanley. Overall profit and revenue climbed for the quarter and came in above expectations, supported by strength in equities trading. Citigroup delivered a top- and bottom-line beat, with its best third-quarter revenue in a decade. Despite the mixed results on Wall Street, one theme unites the group: Management teams say the U.S. consumer is holding up despite higher rates and persistent inflation. Citi CEO Jane Fraser said, "The consumer is still driving much of the [economic] growth," adding that "the labor market is stable, and companies remain active." Wells Fargo CEO Charlie Scharf shared a similar sentiment, pointing to an increase in consumer spending, low loan-delinquency rates, and growing deposit balances. "While economic uncertainty exists and consumer sentiment remains mixed, our data shows that our consumer and business customers are doing well," he told analysts. Tom Essaye, founder and president of Sevens Report Research, a financial research firm, agreed. "Generally speaking, the qualitative commentary on [Wells'] call has reinforced that despite high prices, despite anxiety about wars, despite all the negative stuff that's forming around the consumer, they just keep on trucking and are continuing to spend consistently," he told Fortune. Still, looking ahead, it is unclear whether the consumer can remain this resilient for much longer.  The Federal Reserve raised interest rates in September for the first time in three years. And it does not help that inflation remains elevated, driven in part by surging energy costs tied to the Iran war. As Wells Fargo analyst Mike Mayo, head of U.S. large-cap bank research, told Fortune: "What happens as a result of much higher interest rates? That's the big question." Some other Wall Street analysts caution that the state of the consumer might not stay as healthy as some bank CEOs portray it. CFRA's Alexander Yokum acknowledged that the bank results themselves were solid and management's tone was optimistic. But, he said, the outlook for credit—given sticky inflation and expectations of additional rate increases—is a concern. "Generally speaking, when you look at banking, when rates go up, something often breaks. Last cycle, it started with the Silicon Valley Bank collapse, right? And then there were commercial real estate issues also," Yokum, a senior vice president of equity research at CFRA, told Fortune. "So it's hard to say what it will be this cycle, but it's hard for me to believe that rates can rise significantly and all the banks will be fine." He added, "The concern, for me, is more the future." At least this time, Yokum said, the banks are well capitalized. This story was originally featured on Fortune.com