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Goldman Sachs (GS) Gains As Market Dips: What You Should Know

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In the latest trading session, Goldman Sachs (GS - Free Report) closed at $330.90, marking a +1.93% move from the previous day. This move outpaced the S&P 500's daily loss of 0.57%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 1.04%.

Coming into today, shares of the investment bank had lost 3.88% in the past month. In that same time, the Finance sector lost 1.23%, while the S&P 500 gained 0.64%.

Wall Street will be looking for positivity from Goldman Sachs as it approaches its next earnings report date. This is expected to be October 17, 2023. 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%. 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 $25.74 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. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Goldman Sachs is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Goldman Sachs currently has a Forward P/E ratio of 12.61. For comparison, its industry has an average Forward P/E of 17.5, which means Goldman Sachs is trading at a discount to the group.

It is also worth noting that GS currently has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% 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.

To follow GS in the coming trading sessions, be sure to utilize Zacks.com.


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