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Goldman Sachs (GS) Advances While Market Declines: Some Information for Investors

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Goldman Sachs (GS - Free Report) closed the latest trading day at $490.64, indicating a +0.65% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.3%.

Shares of the investment bank have appreciated by 3.67% over the course of the past month, underperforming the Finance sector's gain of 6.28% and outperforming the S&P 500's gain of 3.64%.

Investors will be eagerly watching for the performance of Goldman Sachs in its upcoming earnings disclosure. The company is forecasted to report an EPS of $8.46, showcasing a 54.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.68 billion, indicating a 7.29% increase compared to the same quarter of the previous year.

GS's full-year Zacks Consensus Estimates are calling for earnings of $35.49 per share and revenue of $51.53 billion. These results would represent year-over-year changes of +55.18% and +11.4%, respectively.

It is also important to note the recent changes to analyst estimates for Goldman Sachs. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 past month, the Zacks Consensus EPS estimate has moved 3.41% lower. Goldman Sachs currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Goldman Sachs has a Forward P/E ratio of 13.73 right now. For comparison, its industry has an average Forward P/E of 16.43, which means Goldman Sachs is trading at a discount to the group.

One should further note that GS currently holds a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 1.14 as trading concluded yesterday.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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