The Goldman Sachs Group, Inc.
) scaled a new 52-week high of $182.07 in the first half of the
trading session on Sep 3. The stock closed the session at $179.60,
reflecting a year-to-date return of 1.5%. The trading volume for
the session was 2.37 million shares.
Despite the strong price appreciation, this Zacks Rank #2 (Buy)
stock has plenty of upside left, given the upward estimate
revisions it witnessed over the last 60 days.
Dismissal of an antitrust lawsuit looming over Goldman was the
primary growth driver. On Aug 29, U.S. District Judge Katherine B.
Forrest disposed the suit, which alleged that the defendants, which
included Goldman's unit Metro International Trade Services LLC,
conspired in hoarding aluminum stock to push up prices.
Along with other defendants, Goldman was given a clean chit by
Forrest after she acknowledged that the complaints did not
convincingly indicate that the defendants deliberately schemed on a
collective basis to raise the prices.
The lawsuit, which was filed in 2013, accused Goldman Sachs,
JPMorgan Chase & Co. (
), Glencore Plc and LME, among others, of hoarding aluminum and
triggering an artificial rise in the metal price since May 2009.
Amid the never ending regulatory issues and political scrutiny on
banks' ownership of the physical commodity business, this latest
discharge of lawsuit brings respite for this banking giant,
reassuring investors to some extent as well.
However, regulatory inquiry regarding the metal business is still
impending on Goldman. Last week, in a $3.15 billion settlement, the
company ended its legal fight with the Federal Housing Finance
Agency (FHFA), the conservator for Freddie Mac (
) and Fannie Mae (
Estimate Revisions Show Strength
Over the last 60 days, the Zacks Consensus Estimate for 2014
witnessed a 6.6% upward revision to reach $16.75 per share. For
2015, the Zacks Consensus Estimate rose 2.5% to $17.37 per share
over the same time frame.
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