Stock Analysis | Goldman Sachs Outlook - A Weak Technical Signal Amid Mixed Fundamentals

Market Snapshot

Goldman Sachs (GS) is in a technically weak position with a poor momentum score, while fundamentals remain mixed. The recent 5-day price movement shows a 1.95% rise, but technical signals are overwhelmingly bearish and suggest caution for short-term traders.

News Highlights

There have been no recent news items affecting Goldman Sachs as of the latest update. However, investors should keep an eye on upcoming earnings or regulatory developments, as those could shift the narrative significantly in the near term.

Analyst Views & Fundamentals

The current analyst consensus shows a mixed outlook for Goldman Sachs, with four "Neutral" ratings, two "Buy" ratings, and one "Sell" rating. This dispersion points to uncertainty among analysts. Here's a breakdown of the key data:

• Simple average rating: 3.14
• Weighted average rating (based on historical performance): 2.42
• Current price trend: 1.95% rise over the recent period, while the average analyst expectations are neutral to bearish.

Goldman Sachs' fundamental metrics include the following key values (and corresponding internal diagnostic scores):

• Price-to-Sales (PS) ratio: 9.49, with an internal diagnostic score of 3.00
• Operating Cycle: 336.35 days, with an internal diagnostic score of 2.00
• Days Sales Outstanding (DSO): 119.03 days, with an internal diagnostic score of 2.00
• Operating revenue (YoY growth rate): 423.43%, with an internal diagnostic score of 2.00
• Non-current assets / Total assets: 53.05%, with an internal diagnostic score of 1.00
• Current assets / Total assets: 47.33%, with an internal diagnostic score of 0.00
• Interest coverage ratio (EBIT / Interest expense): -89.60% (negative), with an internal diagnostic score of 2.00
• Cash flow indicators: Mixed, with an internal diagnostic score of 3.00 for both Cash-MV and Cash-UP.

Money-Flow Trends

Goldman Sachs is currently experiencing negative money-flow trends across all investor categories. The overall inflow ratio is 48.56%, indicating that more money is leaving the stock than entering it.

• Small investor inflow ratio: 49.75%
• Medium investor inflow ratio: 49.46%
• Large investor inflow ratio: 48.84%
• Extra-large investor inflow ratio: 48.14%
• Block investor inflow ratio: 48.41%

With a fund-flow score of 7.89 (out of 10), the inflow activity is rated as "good", but this is not enough to offset the negative technical signals. The fund-flow patterns suggest that while institutional money is slightly positive, the broader market remains cautious.

Key Technical Signals

Goldman Sachs is showing a very weak technical profile with 4 bearish indicators and 1 neutral indicator. The technical score is a 2.69 (out of 10), which suggests the stock should be avoided in the short term.

Recent technical indicators and their internal diagnostic scores (0-10):

• Williams %R Overbought: Score of 3.81 (neutral rise)
• MACD Golden Cross: Score of 4.53 (neutral rise)
• Ex-Dividend Date: Score of 1.00 (biased bearish, average return of -2.71%)
• Bullish Engulfing Pattern: Score of 3.10 (neutral bias, average return of -1.41%)
• Dividend Record Date: Score of 1.00 (biased bearish, average return of -2.71%)

Key technical insights:

• Technical indicators show that the market is in a weak state, and we need to pay attention to the risk of decline.
• Bearish signals are clearly dominant (4 bearish vs 0 bullish).

Recent chart patterns:

• August 22: Williams %R Overbought
• August 26: Williams %R Overbought, Bullish Engulfing
• August 28: Williams %R Overbought
• August 27: Williams %R Overbought, MACD Golden Cross
• August 29: Williams %R Overbought, Ex-Dividend Date, Dividend Record Date

Conclusion

Goldman Sachs is facing challenging conditions on the technical side, with an internal diagnostic score of just 2.69. While fundamentals remain mixed and money-flow trends are only slightly positive, the overwhelming bearish momentum suggests a cautious stance for short-term traders.

Actionable takeaway: Consider waiting for a pullback or clearer momentum signals before taking positions in GS. Investors should also monitor the next earnings report or any major regulatory updates for potential turning points.