Financial mega caps including Goldman Sachs (GS), Morgan Stanley (MS) and Citigroup (C) continued gains for seven straight sessions, as the stocks closed in the green on Wednesday.
Goldman Sachs closed 1.5% higher, while Morgan Stanley and Citigroup were 0.5% and 1.6% high, respectively.
David Solomon-led Goldman Sachs gained over 7% in the preceding six sessions. Morgan Stanley and Citigroup both gained about 6% during that period.
Overall, Goldman Sachs and Citigroup stocks rose over 50% so far this year, while Morgan Stanley rose over 40%. This is in contrast with the 16% rise in the broader S&P 500 Index.
Looking at Seeking Alpha’s Quant Rating, GS, C and MS has a Hold rating, with a Quant score of 3.46, 3.27 and 3.45, respectively. Morgan Stanley and Citigroup got an F in profitability, while Goldman’s score was dragged down by a D- in the valuation factor.
Turning to the Wall Street community, Citigroup and Morgan Stanley got a bullish Buy. Goldman Sachs was considered a Hold by analysts. Meanwhile, Seeking Alpha analysts gave a Buy rating to GS and C, while the other stock received a Hold rating.
“For current holders of Goldman Sachs preferred shares, there’s no reason to sell your shares. Holding your position and adding when the interest rate market is right is the best policy here,” said Seeking Alpha analyst Jeremy LaKosh.
A recent Seeking Alpha analysis upgraded Citigroup to Hold from Sell, saying that the book value improvements make the case stronger for the bank. Similarly, Morgan Stanley has a Hold rating from Seeking Alpha analyst Albert Anthony.
“While its performance against a major index is impressive, as well as net new client flows and other segment momentum, along with strong credit ratings and dividend growth, other indicators point to less justification for a buy at this time,” noted Anthony.
Investors are focusing on Federal Reserve’s final interest rate decision of the year this afternoon. The Fed hinted that it may be done with interest rate cuts for now.
Lending giant JPMorgan (JPM) also closed over 3% higher on Wednesday, recovering from a nearly 5% drop in the previous session.