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Goldman Sachs (GS) Laps the Stock Market: Here's Why
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In the latest market close, Goldman Sachs (GS - Free Report) reached $602.08, with a +0.06% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.05%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq increased by 0.4%.
Shares of the investment bank have appreciated by 17.64% over the course of the past month, outperforming the Finance sector's gain of 7% and the S&P 500's gain of 5.75%.
Market participants will be closely following the financial results of Goldman Sachs in its upcoming release. The company's earnings per share (EPS) are projected to be $7.93, reflecting a 44.71% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.02 billion, indicating a 6.19% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $37.15 per share and revenue of $51.62 billion, which would represent changes of +62.44% and +11.6%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Goldman Sachs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Goldman Sachs currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Goldman Sachs is currently being traded at a Forward P/E ratio of 16.2. This signifies a discount in comparison to the average Forward P/E of 17.86 for its industry.
Also, we should mention that GS has a PEG ratio of 0.87. 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 average PEG ratio for the Financial - Investment Bank industry stood at 1.52 at the close of the market yesterday.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 19% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Goldman Sachs (GS) Laps the Stock Market: Here's Why
In the latest market close, Goldman Sachs (GS - Free Report) reached $602.08, with a +0.06% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.05%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq increased by 0.4%.
Shares of the investment bank have appreciated by 17.64% over the course of the past month, outperforming the Finance sector's gain of 7% and the S&P 500's gain of 5.75%.
Market participants will be closely following the financial results of Goldman Sachs in its upcoming release. The company's earnings per share (EPS) are projected to be $7.93, reflecting a 44.71% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.02 billion, indicating a 6.19% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $37.15 per share and revenue of $51.62 billion, which would represent changes of +62.44% and +11.6%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Goldman Sachs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Goldman Sachs currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Goldman Sachs is currently being traded at a Forward P/E ratio of 16.2. This signifies a discount in comparison to the average Forward P/E of 17.86 for its industry.
Also, we should mention that GS has a PEG ratio of 0.87. 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 average PEG ratio for the Financial - Investment Bank industry stood at 1.52 at the close of the market yesterday.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 19% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.