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Goldman Sachs (GS) Declines More Than Market: Some Information for Investors

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Goldman Sachs (GS - Free Report) closed the latest trading day at $388.61, indicating a -0.94% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.

Prior to today's trading, shares of the investment bank had gained 3.77% over the past month. This has lagged the Finance sector's gain of 6.15% and the S&P 500's gain of 4.42% in that time.

The investment community will be closely monitoring the performance of Goldman Sachs in its forthcoming earnings report. The company is predicted to post an EPS of $8.57, indicating a 2.5% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $13.03 billion, up 6.6% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $32.79 per share and a revenue of $50.52 billion, demonstrating changes of +43.38% and +9.23%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Goldman Sachs. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.41% higher. 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 11.96. This signifies a discount in comparison to the average Forward P/E of 17.37 for its industry.

Meanwhile, GS's PEG ratio is currently 1.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 1.16 as trading concluded yesterday.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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