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Goldman Sachs (GS) to Boost Commodities Unit With New Hires
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Having reported a weak results for commodities in the last earnings season, Goldman Sachs Group Inc. (GS - Free Report) is looking to recover by recruiting high-profile sales people and attracting new clients.
The news was first reported by Bloomberg, citing people familiar with the matter.
The bank has engaged its top executives to get corporate clients from various industries such as energy, power, mining and more. Further, Goldman has been keeping a close watch on the unit’s performance for quite some time now.
Goldman’s commodities unit, which currently employs about 180 people, had been refraining itself from replacing senior employees in order to control costs.Management has decided to shift its focus from controlling costs to improving the unit’s performance.
Last month, the bank’s Chief Financial Officer Marty Chavez attributed the poor performance of commodities unit to lower client activity and the market backdrop.
However, these are not the only factors responsiblefor the poor performance of the unit. Goldman bore heavy losses when its traders failed to make a correct bet on the direction the prices of natural gas would move. Further, it lost again for holding a long position in oil, whereas prices fell 11%, per the article.
Goldman is one of the largest commodity traders and has stuck to its business whereas its competitors like JPMorgan Chase & Co. (JPM - Free Report) and Morgan Stanley (MS - Free Report) curtailed.
Shares of Goldman have lost 12.1% over the past six months, compared to 8.8% decline for the industry.
Currently, the stock carries a Zacks Rank #4 (Sell).
A better-ranked stock in the financial space is Comerica Incorporated (CMA - Free Report) . The company’s Zacks Consensus Estimate for current-year earnings have been revised 3.1% upward over the last 60 days. Also, its shares have gained 50% in a year’s
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
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Goldman Sachs (GS) to Boost Commodities Unit With New Hires
Having reported a weak results for commodities in the last earnings season, Goldman Sachs Group Inc. (GS - Free Report) is looking to recover by recruiting high-profile sales people and attracting new clients.
The news was first reported by Bloomberg, citing people familiar with the matter.
The bank has engaged its top executives to get corporate clients from various industries such as energy, power, mining and more. Further, Goldman has been keeping a close watch on the unit’s performance for quite some time now.
Goldman’s commodities unit, which currently employs about 180 people, had been refraining itself from replacing senior employees in order to control costs.Management has decided to shift its focus from controlling costs to improving the unit’s performance.
Last month, the bank’s Chief Financial Officer Marty Chavez attributed the poor performance of commodities unit to lower client activity and the market backdrop.
However, these are not the only factors responsiblefor the poor performance of the unit. Goldman bore heavy losses when its traders failed to make a correct bet on the direction the prices of natural gas would move. Further, it lost again for holding a long position in oil, whereas prices fell 11%, per the article.
Goldman is one of the largest commodity traders and has stuck to its business whereas its competitors like JPMorgan Chase & Co. (JPM - Free Report) and Morgan Stanley (MS - Free Report) curtailed.
Shares of Goldman have lost 12.1% over the past six months, compared to 8.8% decline for the industry.
Currently, the stock carries a Zacks Rank #4 (Sell).
A better-ranked stock in the financial space is Comerica Incorporated (CMA - Free Report) . The company’s Zacks Consensus Estimate for current-year earnings have been revised 3.1% upward over the last 60 days. Also, its shares have gained 50% in a year’s
time.It carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
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