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Goldman Sachs (GS) Stock Drops Despite Market Gains: Important Facts to Note

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Goldman Sachs (GS - Free Report) closed at $457.38 in the latest trading session, marking a -1.02% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow experienced a drop of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.16%.

The the stock of investment bank has risen by 0.2% in the past month, lagging the Finance sector's gain of 0.26% and the S&P 500's gain of 2.83%.

Market participants will be closely following the financial results of Goldman Sachs in its upcoming release. The company plans to announce its earnings on July 15, 2024. The company is predicted to post an EPS of $8.87, indicating a 187.99% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.75 billion, up 17% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $36.63 per share and revenue of $51.68 billion, which would represent changes of +60.17% and +11.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Goldman Sachs. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. At present, Goldman Sachs boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Goldman Sachs currently has a Forward P/E ratio of 12.62. This valuation marks a discount compared to its industry's average Forward P/E of 18.19.

Investors should also note that GS has a PEG ratio of 0.93 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial - Investment Bank was holding an average PEG ratio of 1.15 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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