Goldman Sachs (GS) Has Bottomed Out

It looks like shares of Goldman Sachs (GS) have bottomed out. The investment banking giant has seen its shares test the $130 level for weeks and the stock has always bounced off of those levels. Goldman recently received an upgrade from JPMorgan Chase. JPMorgan Chase raised Goldman’s rating to outperform citing the investment bank’s strong capital level and its “best of breed” status. The stock is trading at a ridiculous 6.5 times 2011’s earnings estimates. This is a great company that has been caught in the government’s crosshairs for the past year. Goldman’s image problems represent an opportunity for investors. Long term investors have a chance to buy shares of a great long term franchise for a deeply discounted price.