The booming investment bank division has helped to drive up the share price of Goldman Sachs (GS) by 40.9%. The Fed’s plan to tighten its monetary policies in the next year has raised questions among analysts about the company’s potential growth. So, is it worth adding the stock to one’s portfolio now? Let’s see. Goldman Sachs Group Inc. (NYSE;) offers a variety of financial services, including investment banking, securities management and consumer banking. It serves a diverse client base, which includes individuals, companies, governments and financial institutions. Due to various collaborations, its stock price has increased by 40.9% year-to-date.

The company beat analysts’ expectations for revenues by 16.6% and their EPS estimates by 47%, backed by strong performance in mergers and acquisitions (M&A), as well as a hot market for initial public offering (IPOs).

However, management cited a few key factors that could affect the firm’s revenue growth in the coming months, including the increased likelihood of monetary policy tightening in the near term owing to inflationary pressures. This would tend to dissuade corporations from engaging in M&A activities. GS shares fell 4.1% last month as a result of broader market sales prompted by increasing concerns over COVID-19 omicron.

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