We recently announced a list of 10 largest growth stocks. In this article, we're going to look at where the Goldman Sachs Group, Inc. (NYSE: GS) stands against other growth stocks that are most undervalued for purchase now.
Growth stocks are companies growing their revenue and earnings faster than the overall market does. To identify the true growth stocks, we think it is important to use a high enough benchmark over a long enough period. In this case, we define growth stocks as companies that achieved a 5 year revenue compound annual growth rate (CAGR) at least 20%. It is clear that investors would rather have everything else equally, but the truth is that their high valuations and perceived expensive could often make them less attractive. It is not uncommon that high growth companies underperform simply because their high P/E ratio initially contracts gradually over time, offset the contribution of high earnings growth in part or completely. Therefore, the ultimate grail of investment includes identifying undervalued growth stocks that would continue to grow rapidly and at the same time maintain or even expand their multiple trading.
The growth factor has under -performing so that the entire US stock market has withdrawn more than 15% since its early 2025 highlights. The growth stocks performed worse than the market because capital flows into security assets such as protective value stocks and gold; The latter is up more than 30% this year, and its price earnings are actually greater than those of the entire US stock market over the past 10 years. Such situations are rare, and the reality is that by the time growth stocks become cheap enough, many retail investors are no longer ready for purchase. This is exactly what is happening now, as the index of fear and Greed CNN shows a value of 20/100, displaying “extreme fear” in the markets. This public fear is elaborated by the tariff turmoil, especially as the wider market shows the “cross of death” on the technical charts. Like Warren Buffett's teachings to be greedy when others fear, we maintain our optimistic stance for the long -term financial and economic health of the US and its stock market.
The appearance of the “Cross of Death” signal on the technical chart does not turn out to be as scary as the force considers – empirical research shows that the wider market is expected to post positive gains of 1% over the 50 days, following the crossing of the 50 simple daily moving average under the same daily 200 daily, which already occurred on April 11. claim that that time claims that claims to claim that time we want to show that this wide and scary discussed event does not have much substance behind it.
Furthermore, the US economy remains durable, all while President Trump has removed his foot from the tariff gas pedal and gradually gives exceptions to key consumer products such as electronic devices. Employment data has been one of the most reliable recession indicators, and the latest US data shows that March employment showed no sequential decline compared to February and only slightly below the 2023-2024 level. Most of the decline comes compared to 2023-2024 from the public sector and only a minority of workers affected, which is not enough to trigger a broad economic slowdown.
The US Administration suggests towards a possible agreement between Ukraine and Russia, which could lead to the gradual trough and return of US businesses to Russia. Such an incident would induce a positive one-time shock to the market. Russia represents 150 million huge consumer market that is significant for many US businesses. Secondly, the end of the conflict could very likely provide relief for energy prices worldwide, and especially in Europe. Lower energy prices are consistent with increased consumer purchase power and wider business profitability – these two factors should drive gains and corporate prices higher.
With that said, the key takeaway is that markets currently reflect closely to peak pessimism, all while the economic situation in the US and worldwide is no worse than it was last year. Such a scenario is very conducive to growth stocks – not only does the low -spirited market offer more candidates who have been undervalued to invest in, but also suggest a potential economic acceleration if Russia and Ukraine reach a deal under the supervision of US administration.
In order to compile our list of most undervaluation growth stocks, we used a stock screener to filter for companies with at least 20% of revenue CAGR in the last 5 years, and that trade under 15x onwards P/E. We then compared the list with our proprietary database of hedge and content content ownership in the article of the top 10 stocks with the highest number of hedge funds owned by the stock on CH4 2024. The stocks are listed in the descending order of their P/E ratio.
Why are we interested in the stocks to which money accumulates? The reason is simple: our research has shown that we can outperform the market by imitating the main stock options of the best hedge funds. Our quarterly newsletter strategy selects 14 small cap stocks and a large cap every quarter and has returned 373.4% since May 2014, beating its 218 percentage point benchmark (See more details here).
Ai The Goldman Sachs Group, Inc. (GS) is the growth stock most undervalued to buy now?
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P/E ratio on: 10.15
Last 5 years revenue CAGR: 20.29%
Number of Hedgerow Fund Holders: 81
Goldman Sachs Group, Inc. (NYSE: GS) is a systematically important world bank that offers investment banking services, securities and asset management. The company is known for its reputation and strong expertise in advice services for mergers and acquisitions, subscribing and trading. Its asset and wealth management division attracts high net value organizations and individuals through its private banking services.
The operating environment has moved significantly in the current calendar year, with economists Goldman Sachs Group, Inc. (NYSE: GS) reviews the expectations of US growth from over 2% to 0.5%, and increased recession prospects amid increased signs of slowing economic activity worldwide. Despite these challenges, the company is maintaining strong client engagement, with investment banking backpack rising for the fourth quarter in a row, although action will depend on market conditions. GS achieved revenue growth 6% YOY and 16% EPS growth, both exceeding the consensus of the analysts. The company continues to operate on its efficiency enterprises, including adjustments to the pyramid structure and investments in AI solutions to improve client productivity and service capabilities. GS is a high growth and long -term market performer, which only trades on P/E from 10.15, meaning it is one of the most popular stocks to buy now.
Together, gs is a 4th position On our list of most undervalued growth stocks for purchase now. While we recognize the potential of GS to grow, our conviction lies in the belief that AI stocks are more promised for achieving higher earnings and doing so within a shorter timetable. There has been AI stock that has risen since the beginning of 2025, while popular AI stocks lose about 25%. If you are looking for AI stock more promising than GS but trading at less than 5 times its earnings, check out our report for the Cheapest AI Stock.
