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Goldman Sachs (GS) Stock Declines While Market Improves: Some Information for Investors

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Goldman Sachs (GS - Free Report) closed at $497.41 in the latest trading session, marking a -0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.15%.

The the stock of investment bank has fallen by 2.16% in the past month, lagging the Finance sector's gain of 3.08% and the S&P 500's gain of 2%.

The investment community will be paying close attention to the earnings performance of Goldman Sachs in its upcoming release. The company is expected to report EPS of $8.41, up 53.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.64 billion, up 6.96% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $35.43 per share and a revenue of $51.48 billion, demonstrating changes of +54.92% and +11.31%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Goldman Sachs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 0.17% fall in the Zacks Consensus EPS estimate. Goldman Sachs presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Goldman Sachs is presently being traded at a Forward P/E ratio of 14.07. This indicates a discount in contrast to its industry's Forward P/E of 17.06.

It is also worth noting that GS currently has a PEG ratio of 0.78. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.19.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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