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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 most recent trading day at $487.88, moving -0.56% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.3%. Meanwhile, the Dow experienced a drop of 0.54%, and the technology-dominated Nasdaq saw an increase of 0.25%.

Prior to today's trading, shares of the investment bank had gained 3.73% over the past month. This has lagged the Finance sector's gain of 6.22% and outpaced the S&P 500's gain of 3.42% in that time.

The upcoming earnings release of Goldman Sachs will be of great interest to investors. The company is predicted to post an EPS of $8.46, indicating a 54.66% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $12.68 billion, up 7.29% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $35.49 per share and revenue of $51.53 billion, indicating changes of +55.18% and +11.4%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Goldman Sachs. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.41% lower within the past month. As of now, Goldman Sachs holds a Zacks Rank of #3 (Hold).

In terms of valuation, Goldman Sachs is presently being traded at a Forward P/E ratio of 13.82. This represents a discount compared to its industry's average Forward P/E of 16.35.

It is also worth noting that GS currently has a PEG ratio of 0.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.12 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 100, putting it in the top 40% of all 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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