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Goldman Sachs (GS) Gains But Lags Market: What You Should Know

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Goldman Sachs (GS - Free Report) ended the recent trading session at $390.47, demonstrating a +0.57% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 2.11% for the day. Elsewhere, the Dow saw an upswing of 1.18%, while the tech-heavy Nasdaq appreciated by 2.96%.

Heading into today, shares of the investment bank had gained 2.34% over the past month, lagging the Finance sector's gain of 3.61% and the S&P 500's gain of 3.08% in that time.

The investment community will be paying close attention to the earnings performance of Goldman Sachs in its upcoming release. The company is expected to report EPS of $8.62, down 1.93% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $13.05 billion, indicating a 6.75% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $32.66 per share and revenue of $50.49 billion. These totals would mark changes of +42.81% and +9.16%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Goldman Sachs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 0.43% higher. Goldman Sachs is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Goldman Sachs currently has a Forward P/E ratio of 11.89. This expresses a discount compared to the average Forward P/E of 16.52 of its industry.

Meanwhile, GS's PEG ratio is currently 1.36. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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