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Goldman Sachs (GS) Outpaces Stock Market Gains: What You Should Know

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Goldman Sachs (GS - Free Report) closed at $339.49 in the latest trading session, marking a +1.03% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.93%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.71%.

Heading into today, shares of the investment bank had gained 5.17% over the past month, outpacing the Finance sector's gain of 3.55% and the S&P 500's gain of 4.61% in that time.

Goldman Sachs will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2023. The company is expected to report EPS of $7.63, down 1.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.03 billion, up 1.44% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $31.57 per share and revenue of $48.18 billion, which would represent changes of +5.02% and +1.72%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.81% lower within the past month. Goldman Sachs currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Goldman Sachs has a Forward P/E ratio of 10.64 right now. This represents a discount compared to its industry's average Forward P/E of 13.37.

It is also worth noting that GS currently has a PEG ratio of 0.9. 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. GS's industry had an average PEG ratio of 0.9 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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