Goldman Sachs Stock Sees 26% Rally Amid Strong Earnings
Goldman Sachs Group (GS) stock has seen a significant run-up of around 26% from its 52-week low, but it's still trading at an attractive valuation. The company hit a low point in October 2025 due to macroeconomic pressures, including trade and tariff tensions between the U.S. and China, a federal government shutdown, and hawkish comments from then-Fed Chair Jerome Powell.
However, Goldman Sachs' earnings had been strong, driven by investment banking revenue, which was up 20% year-over-year in Q3 2025. The company's record-breaking second quarter saw revenue surge 39% to $20.3 billion, with investment banking revenue increasing 55%. The SpaceX IPO in June also contributed significantly to Goldman Sachs' earnings.
The upcoming Anthropic IPO could provide another boost for the company, potentially generating similar fees to those from the SpaceX IPO. Goldman Sachs stock has dropped from its July levels due to profit-taking and recent commentary from management about a slowdown in trading revenue in Q3. Despite this, the company's forward P/E ratio is around 12.7, making it an attractive investment opportunity.