Is The Goldman Sachs Group, Inc. (GS) the Best Dow Stock?

We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where The Goldman Sachs Group, Inc. (NYSE:GS) stands against other Dow stocks.

The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.

It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.

We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.

Methodology

In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.

We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders: 81

Short Interest as of Apr 30, 2025: 1.38%

The Goldman Sachs Group, Inc. (NYSE:GS) is a financial institution that offers various financial services to financial institutions, individuals, corporations, and governments.

The firm recently released its quarterly earnings and the result helped it provide strong returns in the month of April. The Asset & Wealth Management segment reported revenue growth amounting to $3.7 billion, along with the Private banking and lending revenue growth of 6% year-over-year. The company’s Global Banking & Markets division generated a return on equity of over 20%.

Due to slowing economic growth, the firm anticipates continued uncertainty and market volatility. The Goldman Sachs Group, Inc.'s (NYSE:GS) economists project a slowdown in US GDP growth from 2% to 0.5%, increasing recession risks. However, they have noticed four quarters of sustained growth in investment banking backlog and increased client activity.

The Asset & Wealth Management segment is expected to maintain high single-digit annual growth in durable revenue streams. Management is optimistic that incorporating AI will result in long-term gains, boosting operational efficiency and productivity.

The company recently announced the appointment of two leaders to its merger and acquisition team in Asia (ex-Japan). Sushil Bathija has been selected as Head of M&A for Asia ex-Japan, and Vikram Chavali has been appointed as Head of Sponsors M&A for Asia ex-Japan. They will collaborate with global and regional leaders to catalyze the success of GS’s M&A business in Asia.

Overall, GS ranks 16th on our list of best and worst Dow stocks. 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 doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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