We recently compiled a list of the 20 High Growth Mega Cap Stocks You Can Buy And Hold For Next 5 Years. In this article, we are going to take a look at where The Goldman Sachs Group, Inc. (NYSE:GS) stands against the other high growth mega cap stocks.
Exactly 5 years ago, the world struggled to deal with a black swan event: the COVID-19 pandemic. There was so much uncertainty that people didn’t even know if they’d be alive in the next few weeks, let alone figure out where the market was heading. Anyone who invested in the S&P 5 years ago would have gained 83%. If you had bought at the exact bottom, you’d have gained twice that amount.
What the above proves is that the present isn’t necessarily an indicator of what the future holds. All companies that had their workflows disrupted have recovered, some more than others. Some companies have strengthened their supply chains. Others have improved their work-from-home capabilities. Industries like airlines and restaurants have modified their business models to cater to the new dynamics.
These companies have been able to deal with the changing dynamics because of their financial strength and innovation. A company’s past performance and its finances give a good idea of whether it will be able to survive bad times. That’s why when we look at the best mega-cap stocks to hold for the next 5 years, we look at how well they have grown in the last 5 years.
To come up with our list of top 20 mega-cap stocks to hold for the next 5 years, we considered stocks with a market cap of at least $200 billion and a 5-year sales growth rate of at least 10%.
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The Goldman Sachs Group, Inc. (NYSE:GS) operates as a financial institution and offers various financial services to individuals, financial institutions, corporations, and governments. It operates in Asset & Wealth Management, Global Banking & Markets, and Platform Solutions segments. The company has grown its revenue by 20.29% over the last 5 years.
A 61% performance in the last year means people are asking if the stock has already run up too much. There are reasons to believe that new all-time highs will be registered in 2025 and beyond, making the stock an attractive buy. The bank is expected to grow its earnings by 18% this year and 13% next year. This growth prospect makes it an attractive proposition compared to other banking stocks even at all-time highs.
