Goldman Sachs: Top Pick For 2010?

If you could own only one stock next year, what should it be?

According to Michael Hecht of JMP Securities you should make it Goldman Sachs.

Hecht points to 4 major reasons he thinks Goldman stock will outperform over the next 12 months.

With M&A activity expected to pick up next year and more IPOs are on the horizon, he says Goldman should be a big beneficiary.

At the same time, the fixed-income, currencies and commodities (FICC) business at Goldman is on fire, up 99% this year to date, Hecht says.

The analyst also cites lower compensation expenses, with more bonuses being doled out in the form of stock and at 11 times estimates he thinks the stock is cheap.

4 Reasons Goldman Should Be #1 Pick
-Strong Outlook for Fixed Income, Currencies and Commodities
-Pick up in M&A, IPO Activity
-Attractive Valuation
-Lower Compensation Expenses

As a result Hecht reiterated his “Market Outperform” rating on the shares and raised his target price from $204 to $240.

Instant Insights from the Fast Money traders

At $160, I agree that this stock is attractive, echoes Steve Cortes. All the other traders agree though Pete Najarian thinks Morgan Stanley might come with fewer headaches.

What do you think? We want to know!




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Trader disclosure: On Dec. 29th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders

For Pete Najarian:
Najarian Owns (MMR) Calls
Najarian Owns (BP) Call Spread
Najarian Owns (STX) Calls
Najarian Owns (UUP) Call Spread

For Steve Cortes:
Cortes Owns S&P 500
Cortes Owns U.S. Dollar
Cortes Is Short Godl
Cortes Owns (GD)
Cortes Owns (RTN)
Cortes Is Short (TOL)
Cortes Is Short (PHM)
Cortes Is Short Australian Dollar Futures
Cortes Is Short Mexican Peso Futures

For Steve Grasso:
Grasso Owns (APK)
Grasso Owns (AAPL)
Grasso Owns (ASTM)
Grasso Owns (BAC)
Grasso Owns (BGP)
Grasso Owns (C)
Grasso Owns (COST)
Grasso Owns (CSCO)
Grasso Owns (FAZ)
Grasso Owns (PFE)
Grasso Owns (PRST)
Grasso Owns (WMT)
Grasso Owns (V)
Stuart Frankel & Co. And Its Partners Own (AIZ)
Stuart Frankel & Co. And Its Partners Own (CUBA)
Stuart Frankel & Co. And Its Partners Own (GERN)
Stuart Frankel & Co. And Its Partners Own (GLG)
Stuart Frankel & Co. And Its Partners Own (HSPO)
Stuart Frankel & Co. And Its Partners Own (NWS.A)
Stuart Frankel & Co. And Its Partners Own (NXST)
Stuart Frankel & Co. And Its Partners Own (NYX)
Stuart Frankel & Co. And Its Partners Own (PDE)
Stuart Frankel & Co. And Its Partners Own (PRST)
Stuart Frankel & Co. And Its Partners Own (RDC)
Stuart Frankel & Co. And Its Partners Own (ROK)
Stuart Frankel & Co. And Its Partners Own (TLM)
Stuart Frankel & Co. And Its Partners Own (XRX)
Stuart Frankel & Co. And Its Partners Own (SDS)
Stuart Frankel & Co. And Its Partners Are Short (QQQQ)
Stuart Frankel & Co. And Its Partners Are ShorT (CL)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)

For Dennis Gartman
Funds Managed By Dennis Gartman Own (IP)
Funds Managed By Dennis Gartman Own (DE)
Funds Managed By Dennis Gartman Own (WY)

For Luciano Siracusano
Siracusano Is Chief Investment Strategist Of WisdomTree And Is An Investor In WisdomTree ETFs
Siracusano Owns (EES)

For Jim Ross
Ross Is Senior Managing Director Of State Street Global Advisors And Is
President Of State Street Global Advisors Funds Management, Inc.
Ross Owns (JNK)
Ross Owns (GLD)

For Edward Zabitsky
Zabitsky Is Short (HPQ)


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