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Five volatile stocks worth the risk

Goldman Sachs

After posting strong post-election gains, the entire financial sector has cooled off a bit in recent months, and Goldman Sachs (GS) has been no exception. The stock lost ground in in the latter part of the first-quarter, but shares have stabilized over the last two months and remained in a fairly tight sideways pattern. GS has a beta of 1.4, but I see limited risk of a major downward move at this point. Interest rates are rising, which in the long-term will benefit the entire financial sector, and President Trump is moving to reduce regulations put on the industry during the financial crisis which some believe will help the banks drive up their bottom lines. GS has a very attractive valuation, with a P/E of just 11.96, and analysts forecast earnings to rise 16.2$ in 2017 and by an additional 9.9% in 2018. The stock is currently trading at $224.76, while analysts have an average price target of $240.67.


Chart courtesy of www.stockcharts.com

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.