There was a time when most of the financial institutions were going through a rough phase, but Goldman Sachs Group Inc (NYSE:GS) remained the best choice for all the investors. It never stopped making money, not even during the hardest of times, but now things have slightly changed. New regulations have hit hard the very field in which GS runs most of its businesses. It has once again started the question as GS will be able to maintain its top-notched place in the financial industry or not.
What Wall Street Says About It:
As per the analysis done by various analysts at Wall Street, Goldman Sachs Group Inc (NYSE:GS) has been losing its market leader’s position for last some time. Current analysis suggests that not more than 25% analysts want to give ‘buy’ recommendation to GS stock, which is probably lowest in last many years. Around 50% of the total analysts think that Morgan Stanley (NYSE:MS); the closest rival of GS is in a better position than it. They even recommend MS over GS.
More clarity on this subject will come next week when Goldman Sachs Group Inc (NYSE:GS) and other financial institutions will report their 3Q2014 financial results. Experts think that GS will report higher profit than last year, but at the same time one will have to keep in mind the recent success that it has got. According to reports, all those sources that brought much of its success in recent times have got affected badly by the proposed regulatory changes. If these changes take place, then GS will surely find itself in a difficult position.
Quite a few market experts and analysts think that regulators will come hard on Goldman Sachs Group Inc (NYSE:GS) than its rivals, which will further create problems for it in the near future. It is way more dependent on Wall Street activities than most of its rivals, which can be another negative point for the company.