Goldman Sachs Stock Remains Best in Breed, but Berkshire Hathaway to Play Catch Up

Technical signals suggest Goldman Sachs stock can see further strength. (Michael M. Santiago/Getty Images)

Inside the financial sector, the iShares U.S. Broker-Dealer & Securities Exchanges exchange-traded fund is stealing the spotlight.

The ETF, which consists of stocks like Coinbase Global, Robinhood Markets, and Moody’s, has soared 20% in 2025, double the gains of the Financial Select Sector SPDR.

Its outperformance has been heating up since mid-May, driven by a heavy focus on agile capital market players rather than slower-moving credit services and insurance stocks.

Let’s dive into a couple standout names in the fund that look primed to keep this momentum going, according to our technical analysis.

With most bank earnings behind us, it’s prime time to pinpoint the stocks ready to lead the charge into late 2025.

Goldman Sachs, the ETF’s largest holding, stands out clearly after its latest reaction. Its daily chart is flashing classic bull market signals. We know the best breakouts tend to work right away, and that is exactly what this stock did after taking out a double-bottom base on May 13 , with the pivot coming from the intraday high of March 26. For double-bottom patterns to be considered legitimate the right side of the base must undercut the left side to shake out weak shareholders, and that’s exactly what Goldman stock did? with the early April move undercutting the March lows.

Following the playbook of true leaders, it is offering an add-on buy above the bull flag pivot at $ 725, setting the stage for a breakout with a target near $ 850. Technicians believe in adding to best-in-breed names on the way up, contrary to conventional wisdom, which says to buy low.

Goldman Sachs was changing hands around $725 on Thursday.

Charles Schwab, a top-five holding in the ETF, has been charging ahead in 2025, rallying 28% year to date after breaking out of a textbook double bottom. It, too, registered a strong earnings report this month.

Schwab’s early April move went lower, taking out those March lows. That shook out weak hands and cleared he way above a key cup base pivot at the influential $90 area. This is important, as the vast majority of stocks that trade through the level often go on to reach $100 and beyond.

Now, all eyes are on filling the gap from the July 17 session, the day before the reaction to its latest earnings report. This stock is now just 2% off its all-time highs, trading at $96 on Thursday.

Berkshire Hathaway, however, has notably sat out the recent financials rally. While it isn’t in the iShares U.S. Broker-Dealer & Securities Exchanges ETF, it’s the largest holding in the Financial Select Sector SPDR. The stock is down 9% over the last three-month period. The company reports quarterly earnings on August 3, and technical signals point to a likely bounce upward.

A cluster of six doji candles since early June on the daily chart hints at an inflection point, often a precursor to trend reversals. The fact that these rare candles are making their presence felt with such regularity is a very good sign that the 11% haircut since May 2 could be exhausting itself and it is ready to move higher. The current six-session win streak is also encouraging.

If momentum kicks in, a grind toward $500 looks likely in the near term, with the mid-$500s in sight by the first quarter of 2026.

When financials lead, markets tend to follow.

Write to Doug Busch at douglas.busch@barrons.com