The Goldman Sachs Group Inc.

The Goldman Sachs Group Inc. (GS - Analyst Report) posted better than expected 3rd-quarter results on Oct 15 that were driven by strength in fixed-income trading, helping to offset weakness in investment banking.

3rd-Quarter Results

Revenue was up 10% from last quarter and more than double last year's at $12.4 billion. Earnings also came in strong at $5.25 per share, $1.12 ahead of the Zacks Consensus Estimate. Goldman has beat in each of the last 2 quarters by an average of 34%.

Strength in the company's trading division, with revenues totaling $10 billion helped make up for a 38% decline in Goldman's investment banking division. The company also noted that its Tier 1 capital ratio, a key regulatory financial metric, increased to 14.5% from 13.8%.

Estimates and Valuation

Based on the current-year estimate of $17.70, shares of GS trade with a P/E of 10X, a discount to the overall market.

The Chart

Shares of Goldman have been posting big gains since bottoming out in November of last year. Take a look at the smooth trend higher in the chart below.

Last Week's Momentum Zacks Rank Buy Stocks

Target Corp. (TGT - Analyst Report) is jumping higher as the company benefits from its value oriented consumer approach and a resurgence in consumer confidence. Read Full Article.

Legg Mason, Inc. (LM - Analyst Report) is surging ahead of its Q3 results set to be delivered on Oct 22, helped by rising estimates and a financial sector recovery. Read Full Article.

E-House China Holdings Ltd. (EJ - Snapshot Report) has beat in each of the last 4 quarters by an average of 46% and recently projected 100% Q3 sales growth from last year. Read Full Article.

TransMontaigne Partners LP (TLP - Snapshot Report) has been a steady player over the last year in a very volatile environment, surprising and beating in each of the last 4 quarters by an average of 11 cents, or 24%. Read Full Article.

Read the full analyst report on GS