Financials—Including Goldman—Are Still a Buy: Market Pros

Investors have overreacted to the SEC charges against Goldman Sachs, and the stock is still a buy ahead of its earnings announcement, analysts told CNBC Friday.

SEC Charges Goldman Sachs
SEC Charges Goldman Sachs   

"I look at next week's earnings, and I see strong trading results out of Bank of America and JPMorgan , indicating that [Goldman] could have a really strong trading quarter," Standard & Poor's analyst Matthew Albrecht said.

Goldman is scheduled to release its first-quarter results before the bell on Tuesday.

Jeffery Harte, managing director of equity research at Sandler O'Neill, said it's always tough to comment on civil suits, which play out over time. Still, he's confident the stock's pullback is only temporary.

"The issue's going to become: Is this a one-off item—was it one rogue person—or is it a pervasive issue?"

"I do not think it's a pervasive issue," Harte said.

Albrecht said Friday's pullback in financials also gives investors opportunities to buy into Goldman's peers, such as Citigroup , Bank of America, and JPMorgan. Harte added to the list Morgan Stanley , which has thus far traded at a discount to the rest of the sector.

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Disclosures:

Goldman Sachs and Morgan Stanley are clients of Sandler O'Neill and receive non-investment banking securities related services.

Albrecht does not own any shares of the aforementioned companies, nor are they investment banking clients of Standard & Poors.

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