Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Big Reasons GS Should Be On Your Watchlist

GS Cover Image

Goldman Sachs currently trades at $793.50 and has been a dream stock for shareholders. It’s returned 307% since September 2020, tripling the S&P 500’s 101% gain. The company has also beaten the index over the past six months as its stock price is up 35.4% thanks to its solid quarterly results.

Following the strength, is GS a buy right now? Or is the market overestimating its value? Find out in our full research report, it’s free.

Why Do Investors Watch Goldman Sachs?

Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE: GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.

Three Positive Attributes:

1. Revenue Climbing Higher

Long-term growth is the most important, but within financials, a stretched historical view may miss recent interest rate changes and market returns. Goldman Sachs’s annualized revenue growth of 10.9% over the last two years is above its five-year trend, suggesting some bright spots. Goldman Sachs Year-On-Year Revenue GrowthNote: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

2. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Goldman Sachs’s EPS grew at a remarkable 19.3% compounded annual growth rate over the last five years, higher than its 6.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Goldman Sachs Trailing 12-Month EPS (Non-GAAP)

3. Previous Growth Initiatives Are Paying Off

Return on equity (ROE) reveals the profit generated per dollar of shareholder equity, which represents a key source of bank funding. Banks maintaining elevated ROE levels tend to accelerate wealth creation for shareholders via earnings retention, buybacks, and distributions.

Over the last five years, Goldman Sachs has averaged an ROE of 13%, respectable for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows Goldman Sachs has a narrow competitive moat.

Goldman Sachs Return on Equity

Final Judgment

Goldman Sachs is an interesting business with potential, and with its shares topping the market in recent months, the stock trades at 16.6× forward P/E (or $793.50 per share). Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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