The Goldman Sachs Group, Inc. (GS) "Is The Barometer" For The Stock Market, Says Jim Cramer

We recently published Jim Cramer Said Quantum Computing Could Quench AI’s Thirst For Water As He Discussed These 14 Stocks . The Goldman Sachs Group, Inc. (NYSE:GS) is one of the stocks Jim Cramer recently discussed.

The Goldman Sachs Group, Inc. (NYSE:GS)’s shares have been performing well lately as mergers and acquisitions pick up. They have gained 25.5% year-to-date and are up by 56% since the post-Liberation Day dip in April. Cramer’s previous comments about The Goldman Sachs Group, Inc. (NYSE:GS) have discussed the bank’s valuation and commented that a price-to-earnings ratio of 16 was too low. The shares are currently trading at a P/E ratio of 15.9, while the CNBC host believes they should trade at least 18. This time, Cramer discussed The Goldman Sachs Group, Inc. (NYSE:GS) in the context of broader market activity and President Trump’s belief that its top management should switch careers:

“The reason I brought it up instead of Rocket Mortgage is because Goldman encapsulates everything, IPOs, right, M&A, trading volume. This is the barometer for this stock market and it took off in a way that I haven’t seen in ages.

“I just wonder what the President thinks of Kostin. Because Kostin’s very good. . .no, no I think Kostin’s good.”

Here is what Cramer believes about The Goldman Sachs Group, Inc. (NYSE:GS)’s valuation:

“Goldman, Goldman and Morgan. I think that Goldman stock has been elevated because of things I guess. Now see, Goldman’s only at [inaudible] it’s got a parabolic move. But it sells at 16 times earnings. That is a candidate to be revalued up to 18, 19 times earnings.”

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.