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

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The most recent trading session ended with Goldman Sachs (GS - Free Report) standing at $376.40, reflecting a -1.08% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.45%.

The investment community will be paying close attention to the earnings performance of Goldman Sachs in its upcoming release. The company is slated to reveal its earnings on January 16, 2024. On that day, Goldman Sachs is projected to report earnings of $5.29 per share, which would represent year-over-year growth of 59.34%. Simultaneously, our latest consensus estimate expects the revenue to be $11.06 billion, showing a 4.45% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $22.96 per share and a revenue of $46 billion, signifying shifts of -23.62% and -2.88%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Goldman Sachs. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. At present, Goldman Sachs boasts a Zacks Rank of #3 (Hold).

Investors should also note Goldman Sachs's current valuation metrics, including its Forward P/E ratio of 16.58. For comparison, its industry has an average Forward P/E of 17.81, which means Goldman Sachs is trading at a discount to the group.

It is also worth noting that GS currently has a PEG ratio of 2.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 21% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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