The result? Earnings per share of $6.13 when the Street consensus estimates were for $4.35 – a 40% beat.
“That can only happen when you’re an underestimated and fabulous company,” Cramer said. Goldman Sachs has proved it is a better firm than the other brokers, and “it deserves to trade that way.”
Still, though, Goldman has the lowest multiple in the group. Despite steering clear of the credit crunch and blowing away its quarterly numbers, Cramer’s alma mater is behind its peers in terms of valuation.
But don’t expect that to last for long. Goldman exhibited consistency and strength when no one else in the sector could, and the Street will soon recognize that, Cramer said. He said a higher multiple is only a matter of time.
“I think this stock is going much higher,” Cramer said, all the way to his $300 price target.
Jim's charitable trust owns Goldman Sachs.
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