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Will Goldman Sachs (GS) Crush Estimates at Its Next Earnings Report?

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider The Goldman Sachs Group, Inc. (GS - Free Report) , a firm in the Financial - Investment Bank industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, GS has beaten estimates by at least 20% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, GS expected to post earnings of $3.01 per share, while it actually produced earnings of $3.72 per share, a beat of 23.6%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of $3.86 per share, when it actually saw earnings of $4.88 per share instead, representing a 26.4% positive surprise.

Goldman Sachs Group, Inc. (The) Price and EPS Surprise

Thanks in part to this history, recent estimates have been moving higher for Goldman Sachs. In fact, the Earnings ESP for GS is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for GS, as the firm currently has a Zacks Earnings ESP of 1.06%, so another beat could be around the corner.

This is particularly true when you consider that GS has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that GS could see another beat at its next report, especially if recent trends are any guide.

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