Piotroski’s Best and Worst Large Cap Stocks

By Joel Stonington - 2011-12-06T01:37:02Z

Photograph by Scott Eells/Bloomberg

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Piotroski's Worst: Goldman Sachs

Business: Global investment banking and securities

Piotroski Score: 2

While Goldman's (GS) return on assets fell from 1.41 percent in 2009 to 0.88 percent in 2010, its operating cash flow was negative at -$6.16 billion in 2010. Because this was less than the firm's net income of $8.35 billion, Goldman got zero points from the Piotroski model on this metric.

Outlook for the Company:

Bull Case: Bloomberg Industries says declining global GDP expectations and stock market volatility are already priced into projections. There could be upside for investment banking stocks as trends improve.

Bear Case: European sovereign concerns will continue to lead to market volatility and compress global economic growth, says Bloomberg Industries.