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In October 2025, Goldman Sachs (NYSE: GS) stock hit a 52-week closing low of $744 per share, mostly because of macroeconomic pressures.

There was saber-rattling between the U.S. and China over trade and tariffs, the federal government was in the midst of a long shutdown as Congress fought over the budget and the Affordable Care Act, and then-Fed Chair Jerome Powell was making hawkish remarks about the central bank's expectations for interest rates.

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But Goldman Sachs' earnings had been strong, fueled by investment banking. Overall, revenue was up 20%, and earnings jumped 46% year-over-year in Q3 2025.

So the dip in Goldman Sachs stock, which was driven mostly by macroeconomic forces, created a great buying opportunity. It has climbed by about 26% since then to its current $942 per share price.

But at its 52-week peak on July 15, it had skyrocketed about 56% to $1,152 per share. Its 18% pullback since then has created another excellent buying opportunity.

This has been a record year for mergers and acquisitions, with some $2.8 trillion worth of deals in the first six months of 2026, marking a 48% year-over-year increase.

No financial institution benefits more from M&A than Goldman Sachs. Not only is it one of the premier investment banks in the world by just about every measure, it typically generates more of its revenue from investment banking than its larger competitors, which have more diversified offerings. So when M&A is up, Goldman Sachs will typically outperform.

JPM data by YCharts.

That was clear in the second quarter when Goldman Sachs posted record-shattering results, which sent shares flying to that 52-week high. Revenue surged 39% to $20.3 billion, with investment banking revenue up 55%. Earnings per share soared to $20.98, up 92% year-over-year.

The company benefited from the record pace of M&A deals, but it got an added boost from the SpaceX (NASDAQ: SPCX) IPO in June, which it was the lead advisor on. Goldman Sachs generated $100 million in fees on that IPO, which was the largest in history.

Goldman Sachs is now one of the lead advisors on another pending blockbuster offering. Anthropic's IPO is reportedly going to happen in October, and it is projected to be even bigger than the SpaceX debut.

Goldman Sachs stands to generate similar fees, if not more, as it did for the SpaceX IPO.

That should provide a boost for Goldman Sachs in Q4.

Goldman Sachs stock has dropped from its July levels due to a variety of factors. Some of it was profit-taking, but the Fed's interest rate increase and management's recent commentary about a slowdown in trading revenue in Q3 may have also contributed.

Now, though, Goldman Sachs stock is trading at a relative discount, with a forward P/E of about 12.7. At that valuation, it is positioned to go on another run after the Anthropic IPO.

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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.

Should You Buy Goldman Sachs Stock After Its 26% Run-Up From Its 52-Week Low? was originally published by The Motley Fool