The bears are all over Goldman Sachs (GS) .
Shares of the investment bank have dropped for 11 straight sessions, or about 6%, on fears of muted trading revenues for the third quarter and a slowing M&A market. Goldman isn’t alone in selling off — Bank of America (BAC) , JPMorgan Chase (JPM) and Morgan Stanley (MS) have all come under pressure since late August.
The Other Side
For every bear, there is often a bull on the other side of the trade. Here’s what the Action Alerts PLUS research team is saying on Goldman:
“We believe shares will ultimately push higher as the company continues to deliver improved return on equity performance and growth in tangible book value. Driving this will be success with trading revenues, which are supported by a volatile market, and advisory/IB fees driven by a hot M&A market. Furthermore, the re-initiation of management’s $5 billion buyback program should provide additional tailwinds and provide a floor that the stock did not have in the second quarter.”