Ken Leon, global head of equity research at S&P Capital IQ, says investors are worried about sustainability following Goldman Sachs’ (GS) big earnings beat on Thursday. Despite reporting its highest earnings per share in more than five years with all of its major businesses topping analysts’ estimates, shares of Goldman retreated after their initial rise on concerns that this type of growth won’t be possible in the coming quarters. Leon breaks down the company’s performance and explains that he is maintaining his hold recommendation on the stock as Goldman’s ability achieve significant growth ahead will be challenging. He notes that there are also regulatory constraints on Goldman, which may present speed bumps for the firm along the way.
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