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Why Goldman Sachs (GS) Dipped More Than Broader Market Today

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Goldman Sachs (GS - Free Report) ended the recent trading session at $379.75, demonstrating a -0.58% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.07%.

The the stock of investment bank has risen by 5.3% in the past month, leading the Finance sector's gain of 1.65% and the S&P 500's gain of 3.98%.

Investors will be eagerly watching for the performance of Goldman Sachs in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 16, 2024. In that report, analysts expect Goldman Sachs to post earnings of $3.76 per share. This would mark year-over-year growth of 13.25%. Simultaneously, our latest consensus estimate expects the revenue to be $10.8 billion, showing a 1.92% escalation compared to the year-ago quarter.

Investors should also take note of any recent adjustments to analyst estimates for Goldman Sachs. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.19% lower. Currently, Goldman Sachs is carrying a Zacks Rank of #4 (Sell).

In terms of valuation, Goldman Sachs is currently trading at a Forward P/E ratio of 11.94. This denotes a discount relative to the industry's average Forward P/E of 14.88.

Also, we should mention that GS has a PEG ratio of 1.37. 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. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.18.

The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 203, finds itself in the bottom 20% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

To follow GS in the coming trading sessions, be sure to utilize Zacks.com.


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