Goldman Sachs shares are trading at all-time highs.
Shares of the Wall Street bank are trading around up around $241.15 — up about 30% since President-elect Donald Trump’s political victory on November 9.
That’s their highest level since they opened for trading after the company’s IPO on May 3, 1999.
Goldman Sachs shares have also outperformed every other company on the Dow Jones Industrial Average since the election.
Analysts from both Deutsche Bank and KBW upgraded the global investment bank in late November.
- a better trading environment for fixed income, currencies, and commodities business, which the firm relies on more than peers
- a rising rates environment
- wide-sweeping regulatory changes
- a stronger macro environment, for which Goldman is well-positioned thanks to its revenue upside, good cost control, and valuation below peers
“A stronger economy should benefit many capital market businesses — incl advisory, equity capital markets, and both fixed and equity trading (all areas of strength at GS),” Deutsche Bank’s Matt O’Connor wrote on November 29. “This should also be a positive backdrop for investing and lending (even assuming no regulatory changes).”
He also said he expects the firm’s recent rollout of its consumer lending platform, Marcus, to build momentum.
Most Wall Street banks have been performing strongly since Trump’s political victory, but Goldman Sachs has emerged as a particular winner.
Trump appointed former Goldman Sachs banker Steven Mnuchin Treasury secretary last month, and Steve Bannon, his incoming chief strategist, is also a Goldman Sachs alum. Additionally, Trump is also reportedly considering Goldman Sachs President Gary Cohn for a role in the administration.
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