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3 Reasons to Buy Goldman Sachs Now

By Dave Mock - Updated Apr 5, 2017 at 7:53PM

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There are lots, but here are three biggies.

No matter what's going on in the market or a specific company's history, there are always reasons to consider buying shares in a business. After all, some of the best opportunities in stocks come in historically tough times.

Motley Fool CAPS hosts a boatload of opinions from more than 125,000 members on nearly 5,400 stocks, including good reasons to own -- or sell -- a stock.

In the case of former investment banker Goldman Sachs (NYSE:GS), 5,168 members have given a bullish or a bearish opinion. Scouring the detailed information packed in pitches and other comments on Goldman Sachs, here are three of the top reasons to buy it today:

The road back: Goldman's reinventing itself as a bank holding company and it's considering joining others like E*Trade (NASDAQ:ETFC) and ING (NYSE:ING) in opening an online bank. Raising deposits is competitive these days, with Citigroup (NYSE:C) and many others wanting customer cash, but Goldman has a name recognized around the world, which could be a big plus.  

Changing colors: Goldman scrambled with companies like American Express (NYSE:AXP) and Morgan Stanley (NYSE:MS) to become bank holding companies so they could qualify for the government's Troubled Asset Recovery Program. The TARP money added to Goldman's cash position, and some anticipate Goldman will take advantage of distressed asset prices and purchase another bank to increase deposits.

Value: There's no doubt Goldman has been hit hard this year, but many investors see value in a resilient company with long-term potential. Warren Buffett has taken advantage of market conditions and patiently nibbled away at some bargains with a $5 billion investment in Goldman and another $3 billion in General Electric (NYSE:GE) through preferred stock with warrants.

Of course, there's a lot more devil in the details of these buy-side opinions, which is why CAPS is such a great resource to check and balance your own analysis. You can read the bullish and bearish sides to every stock. To see what the very best CAPS members are saying now about Goldman Sachs, just click on over to Motley Fool CAPS and have a look -- it's all free, and your opinion's welcome, too.

More Foolishness:

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

Fool contributor Dave Mock has come to loathe "some assembly required" gifts for the kids. He owns no shares of companies mentioned here. American Express is an Inside Value recommendation and the Fool owns shares of American Express. The Fool's disclosure policy made a solid recovery and now stands on the "nice" side of Santa's list.

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Stocks Mentioned

The Goldman Sachs Group, Inc. Stock Quote
The Goldman Sachs Group, Inc.
$353.82 (0.61%) $2.14
American Express Company Stock Quote
American Express Company
$165.84 (1.75%) $2.85
Citigroup Inc. Stock Quote
Citigroup Inc.
$54.38 (0.70%) $0.38
Morgan Stanley Stock Quote
Morgan Stanley
$91.66 (1.62%) $1.46
General Electric Company Stock Quote
General Electric Company
$79.93 (1.30%) $1.03
E*TRADE Financial Corporation Stock Quote
E*TRADE Financial Corporation
ING Groep N.V. Stock Quote
ING Groep N.V.
$9.87 (0.75%) $0.07

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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