Clear Skies Ahead: Goldman Sachs Has No Top in Sight

Mario Tama/Getty Images

Mario Tama/Getty Images

Goldman Sachs (NYSE:GS) is a pretty well-known financial company that has had one hell of a stock. It has made countless investors loads of money over the years. It is one of the most successful banks in the history of the world. The company provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. It operates through four segments: Investment Banking, Institutional Client Services, Investing and Lending, and Investment Management. The Investment Banking segment offers financial advisory services, including strategic advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, and restructurings and spin-offs as well as underwriting services, such as public offerings and private placements of a range of securities, and other financial instruments, and derivative transactions.

The Institutional Client Services segment is involved in client execution activities related to making markets in interest rate products, credit products, mortgages, currencies, and commodities, as well as provides financing, securities lending, and other prime brokerage services to institutional clients. The Investing and Lending segment invests in and originates longer-term loans to provide financing to clients. It also makes investments in debt securities and loans, public and private equity securities, and real estate entities. The Investment Management segment provides investment products and services, as well as offers wealth advisory services, such as portfolio management and financial counseling, and brokerage and other transaction services.

The company is among the biggest players in the industry. Competing with the likes of Morgan Stanley (NYSE:MS) and JPMorgan (NYSE:JPM), Goldman has long been a strong performer. Investment banks like Morgan Stanley and JPMorgan have ups and downs, but after Goldman’s strong performance, it is clear that investment banking is back. I think the stocks in this sector are far undervalued.

In fact, Goldman Sachs — relative to JPMorgan and Morgan Stanley — continued its leadership in investment banking, ranking first worldwide in completed mergers and acquisitions for the year-to-date. The firm also ranked first in worldwide equity and equity-related offerings, common stock offerings, and initial public offerings for the year-to-date.