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

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Goldman Sachs (GS - Free Report) closed the latest trading day at $574.97, indicating a +0.41% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.22% for the day. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.16%.

The the stock of investment bank has fallen by 4.36% in the past month, leading the Finance sector's loss of 5.69% and undershooting the S&P 500's loss of 2.36%.

Analysts and investors alike will be keeping a close eye on the performance of Goldman Sachs in its upcoming earnings disclosure. On that day, Goldman Sachs is projected to report earnings of $7.94 per share, which would represent year-over-year growth of 44.89%. Our most recent consensus estimate is calling for quarterly revenue of $12.06 billion, up 6.58% from the year-ago period.

Any recent changes to analyst estimates for Goldman Sachs should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.91% higher within the past month. Right now, Goldman Sachs possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Goldman Sachs is presently trading at a Forward P/E ratio of 13.31. This expresses a discount compared to the average Forward P/E of 14.53 of its industry.

Also, we should mention that GS has a PEG ratio of 0.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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. With its current Zacks Industry Rank of 25, this industry ranks in the top 10% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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