Goldman Sachs (GS) closed the most recent trading day at $399.19, moving -1.76% from the previous trading session. This change lagged the S&P 500’s 0.23% gain on the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the investment bank had lost 2.7% over the past month, lagging the Finance sector’s loss of 0.45% and the S&P 500’s gain of 3.34% in that time.
Goldman Sachs will be looking to display strength as it nears its next earnings release. In that report, analysts expect Goldman Sachs to post earnings of $11.54 per share. This would mark a year-over-year decline of 4.47%. Our most recent consensus estimate is calling for quarterly revenue of $11.65 billion, down 0.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $60.13 per share and revenue of $58.38 billion. These totals would mark changes of +143.05% and +31.02%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Goldman Sachs. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Goldman Sachs is currently a Zacks Rank #3 (Hold).
Digging into valuation, Goldman Sachs currently has a Forward P/E ratio of 6.76. For comparison, its industry has an average Forward P/E of 12.17, which means Goldman Sachs is trading at a discount to the group.
Also, we should mention that GS has a PEG ratio of 0.6. 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. The Financial – Investment Bank was holding an average PEG ratio of 0.6 at yesterday’s closing price.
The Financial – Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
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