Back to top

Image: Bigstock

Goldman Sachs (GS) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

The latest trading session saw Goldman Sachs (GS - Free Report) ending at $337.65, denoting a -0.02% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.1%. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.29%.

The the stock of investment bank has risen by 12.26% in the past month, leading the Finance sector's gain of 10.97% and the S&P 500's gain of 10.68%.

Analysts and investors alike will be keeping a close eye on the performance of Goldman Sachs in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $5.31, marking a 59.94% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $11.08 billion, up 4.59% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $22.98 per share and revenue of $46.01 billion, which would represent changes of -23.55% and -2.85%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Goldman Sachs. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.18% upward. Right now, Goldman Sachs possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Goldman Sachs is currently being traded at a Forward P/E ratio of 14.69. This valuation marks a discount compared to its industry's average Forward P/E of 16.32.

We can also see that GS currently has a PEG ratio of 1.98. 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. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.45.

The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 22% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Goldman Sachs Group, Inc. (GS) - free report >>

Published in