Goldman Sachs(GS) ZACKS·2024-12-16 19:05Regulatory Approvals and Market Expansion - Goldman Sachs has obtained regulatory approvals from the Beijing Bureau of China Securities Regulatory Commission to sell funds in China, marking a significant step for the U.S. investment bank in the China market [1] - The license was granted to Goldman Sachs's China securities brokerage unit, following Morgan Stanley's recent approval to begin a futures business in China [2] - These licenses demonstrate Beijing's commitment to opening the financial sector to foreign companies and highlight the growing prospects for international financial institutions in China's sizable market [2] Business Restructuring and Focus on Core Operations - Goldman Sachs has refocused on its core strengths of investment banking (IB) and trading operations while scaling back its consumer banking footprint [3] - The company completed the sale of its General Motors credit card business to Barclays in October 2024 and sold its home-improvement lending platform, GreenSky, to a consortium of investors in the first quarter of 2024 [3] - In the fourth quarter of 2023, Goldman Sachs sold its Personal Financial Management unit to Creative Planning and ceased unsecured loan offerings through its digital consumer banking platform, Marcus [4] - These moves align with Goldman Sachs's strategy to focus on and grow its core businesses, leveraging its strong leadership position, wide scale of operations, and exceptional talent [4] Stock Performance and Peer Comparison - Over the past six months, Goldman Sachs shares have gained 30.3%, outperforming the industry's growth of 24.4% [5] - Raymond James Financial Inc. (RJF) and Bank of America Corporation (BAC) are better-ranked peers, with RJF sporting a Zacks Rank of 1 (Strong Buy) and BAC carrying a Zacks Rank of 2 (Buy) [8][9] - Raymond James Financial's 2024 earnings estimates have been revised upward to 3.27 per share, with its shares gaining 16.2% over the past six months [9]