Goldman Sachs shares are up 30% since Trump's victory
Goldman Sachs CEO Lloyd Blankfein.Thomson Reuters
Goldman Sachs is once again trading at post-crisis highs on Thursday.
Shares of the Wall Street bank were trading at $241.64 around 1:50 pm ET — up about 30% since President-elect Donald Trump's political victory on November 8.
That's near their highest level on record, $247.92 in 2007.
Goldman Sachs shares have also outperformed every other company on the Dow Jones Industrial Average since the election. It is responsible for about one third of the Dow's "Trump rally."
Analysts from both Deutsche Bank and KBW upgraded the global investment bank in late November.
They said they expect:
- 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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