The Goldman Sachs Group, Inc. (GS): I'm "Very Worries" About Goldman, Says Jim Cramer

We recently published 11 Fresh Stocks Jim Cramer Talked About While Discussing AI-Led “American Renaissance”. The Goldman Sachs Group, Inc. (NYSE:GS) is one of the stocks Jim Cramer recently discussed.

The Goldman Sachs Group, Inc. (NYSE:GS) is one of the largest investment banks in the world. Its shares have gained 22.8% year-to-date on the back of growing deal activity in the US, which tends to benefit the firm. Cramer’s previous comments about the firm have pointed towards the increased deal making and its benefits to The Goldman Sachs Group, Inc. (NYSE:GS)’s shares. He has also remarked that the bank and its peers are trading at a significant discount to the broader S&P index. This time around, he commented on The Goldman Sachs Group, Inc. (NYSE:GS) earnings:

“I am very worried about Goldman tomorrow. Because David Solomon is not, he’s humble, there’s a guy who’s humble.”

The CNBC TV host discussed The Goldman Sachs Group, Inc. (NYSE:GS) and its peers in detail previously. Here’s what he said:

“Goldman Sachs, which we own for the Charitable Trust… let’s just say it’s had a smaller dividend payout than its peers for a long time, but also just announced a major 33% dividend boost. Now, even after that, the stock only yields 2.23%, but that is no longer chintzy… Goldman trades at 2.22 times book value… Goldman Sachs, JPMorgan, and Morgan Stanley have the most valuable franchises… Morgan Stanley and Goldman are two tremendous investment banks…

And look, when you judge the bank stocks on a price to earnings basis, you get a similar story… Goldman Sachs, JPMorgan, and Morgan Stanley are once again on the more expensive side, all selling for roughly 16 times earnings. To put that in perspective, though, the overall S&P 500 currently trades at close to 24 times this year’s earnings estimates. So, wow, these are outta whack. I would say they’re cheap… The strongest, Cramer fave, and former employer, Goldman Sachs, has rallied 25% [for the year]…

Still, with the banks featuring discount multiples compared to the overall market, you know what, I’m not so sure that the good times… necessarily have to end for this group. I think they can continue moving higher. The bottom line: In this environment, I bet the big banks are some of the best investments this year, yet still very inexpensive, at least on earnings versus the rest of the market, have more room to run, maybe much more. As for which ones you should own, well, that’s a personal choice. I’m very happy with Goldman Sachs and Wells Fargo. We own those for the Charitable Trust.”

While we acknowledge the potential of GS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.