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Goldman Sachs (GS) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Goldman Sachs (GS - Free Report) closed at $321.13, marking a -0.81% move from the previous day. This move lagged the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 1.06%.

Heading into today, shares of the investment bank had lost 7.04% over the past month, lagging the Finance sector's loss of 1.75% and the S&P 500's gain of 0.58% in that time.

Goldman Sachs will be looking to display strength as it nears its next earnings release, which is expected to be October 17, 2023. In that report, analysts expect Goldman Sachs to post earnings of $6.81 per share. This would mark a year-over-year decline of 17.45%. Our most recent consensus estimate is calling for quarterly revenue of $11.53 billion, down 3.74% from the year-ago period.

GS's full-year Zacks Consensus Estimates are calling for earnings of $25.74 per share and revenue of $46.01 billion. These results would represent year-over-year changes of -14.37% and -2.86%, respectively.

Any recent changes to analyst estimates for Goldman Sachs should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Goldman Sachs is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Goldman Sachs's current valuation metrics, including its Forward P/E ratio of 12.58. This represents a discount compared to its industry's average Forward P/E of 16.67.

It is also worth noting that GS currently has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. 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. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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