GS SHORT 300
Bearish sentiments:
1. spinning top distributing on quarterly chart
2. break of a trend
3.bearish engulfing
One reason Goldman Sachs is trading at such a discount probably is because the same forces that drove strong profits this year might not be as strong into next year.
Analysts believe the company's growth will slow going into the fourth quarter, with their average estimates pegging sales growth at 2% from last year, while EPS is expected to decline 3%. Analysts are even less optimistic about growth in 2022, estimating sales to fall 18% from this year's projected full-year earnings, while EPS is projected to decline 33%.
So although Goldman Sachs has seen impressive performance this year while crushing expectations along the way, investors shouldn't expect the rapid growth to continue. Investment banking could continue to be robust into next year, but the slowing rate of growth should be on investors' minds. For this reason, I believe Goldman Sachs' cheap valuation may be justified but we can see price in the quarter or two