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Goldman Sachs (GS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Goldman Sachs (GS - Free Report) closed at $322.33, marking a +1.11% move from the previous day. This change outpaced the S&P 500's 1.1% gain on the day. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 1.59%.

Heading into today, shares of the investment bank had lost 10.12% over the past month, lagging the Finance sector's loss of 4.44% and the S&P 500's loss of 3.13% in that time.

Wall Street will be looking for positivity from Goldman Sachs as it approaches its next earnings report date. The company is expected to report EPS of $6.82, down 17.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.53 billion, down 3.74% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $25.75 per share and revenue of $46.01 billion, which would represent changes of -14.34% and -2.86%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Goldman Sachs. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.66% lower. Goldman Sachs is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Goldman Sachs is currently trading at a Forward P/E ratio of 12.38. This valuation marks a discount compared to its industry's average Forward P/E of 16.2.

It is also worth noting that GS currently has a PEG ratio of 1.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Bank industry currently had an average PEG ratio of 1.24 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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