Price to Earnings Multiple

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This quarter showed how Goldman has become a well-oiled machine, says Jim Cramer
CNBC Televisionยท 2025-07-16 23:56
Investment Strategy - During earning season, a stock decline is often wrongly perceived negatively, potentially creating buying opportunities [1] - When a stock declines after earnings, investors should first review the conference call transcript and use chatbots to identify potential missed issues [10] - If the analysis is positive, consider buying on weakness, as the decline is unlikely to last [11] - Pyramid buying, gradually increasing the investment as the stock goes lower, can be a solid strategy [6] Goldman Sachs Analysis - Goldman Sachs' stock is considered cheap by many, including its alumni, despite sophisticated valuation metrics [3] - CEO David Solin's efforts have transformed Goldman Sachs into a more consistent earnings generator [5] - The company's blowout quarter was met with an initial stock decline, which was viewed as a buying opportunity [6] - Goldman Sachs experienced its best trading quarter in history, with strong wealth management and improving M&A and IPO activity [8] - The market may re-evaluate Goldman Sachs with a higher price-to-earnings multiple, potentially propelling the stock higher [5][8]