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Goldman Sachs (GS) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Goldman Sachs (GS - Free Report) closed at $327.71, marking a -0.26% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq gained 0.11%.

Prior to today's trading, shares of the investment bank had lost 6.41% over the past month. This has lagged the Finance sector's loss of 2.06% and the S&P 500's loss of 1.25% in that time.

Investors will be hoping for strength from Goldman Sachs as it approaches its next earnings release. On that day, Goldman Sachs is projected to report earnings of $6.81 per share, which would represent a year-over-year decline of 17.45%. Our most recent consensus estimate is calling for quarterly revenue of $11.53 billion, down 3.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $25.74 per share and revenue of $46.01 billion, which would represent changes of -14.37% and -2.86%, respectively, from the prior year.

Any recent changes to analyst estimates for Goldman Sachs should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.71% lower. Goldman Sachs is currently a Zacks Rank #3 (Hold).

In terms of valuation, Goldman Sachs is currently trading at a Forward P/E ratio of 12.77. For comparison, its industry has an average Forward P/E of 16.13, which means Goldman Sachs is trading at a discount to the group.

We can also see that GS currently has a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GS's industry had an average PEG ratio of 1.28 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 179, which puts it in the bottom 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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