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Goldman Sachs (GS) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Goldman Sachs (GS) closed the most recent trading day at $208.22, moving -0.86% from the previous trading session. This change lagged the S&P 500's daily loss of 0.24%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.58%.

Heading into today, shares of the investment bank had gained 4.79% over the past month, lagging the Finance sector's gain of 6.44% and the S&P 500's gain of 4.96% in that time.

Wall Street will be looking for positivity from GS as it approaches its next earnings report date. In that report, analysts expect GS to post earnings of $5.53 per share. This would mark a year-over-year decline of 11.94%. Our most recent consensus estimate is calling for quarterly revenue of $8.62 billion, down 0.31% from the year-ago period.

GS's full-year Zacks Consensus Estimates are calling for earnings of $22.81 per share and revenue of $35.43 billion. These results would represent year-over-year changes of -9.73% and -2.04%, respectively.

Investors should also note any recent changes to analyst estimates for GS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. GS is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that GS has a Forward P/E ratio of 9.21 right now. Its industry sports an average Forward P/E of 11.75, so we one might conclude that GS is trading at a discount comparatively.

Also, we should mention that GS has a PEG ratio of 0.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Bank was holding an average PEG ratio of 1.6 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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