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Goldman Sachs (GS) Increases Despite Market Slip: Here's What You Need to Know

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The latest trading session saw Goldman Sachs (GS - Free Report) ending at $349.39, denoting a +0.28% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.54%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.84%.

The investment bank's shares have seen an increase of 6.35% over the last month, not keeping up with the Finance sector's gain of 10.48% and the S&P 500's gain of 8.62%.

Analysts and investors alike will be keeping a close eye on the performance of Goldman Sachs in its upcoming earnings disclosure. The company is forecasted to report an EPS of $5.31, showcasing a 59.94% upward movement from the corresponding quarter of the prior 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.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Goldman Sachs. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Goldman Sachs presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Goldman Sachs is presently being traded at a Forward P/E ratio of 15.16. This valuation marks a discount compared to its industry's average Forward P/E of 16.6.

One should further note that GS currently holds a PEG ratio of 2.05. 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 industry currently had an average PEG ratio of 1.5 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 206, positioning it in the bottom 19% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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