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

·3 min read

Goldman Sachs (GS) closed the most recent trading day at $326.49, moving -1.51% from the previous trading session. This change lagged the S&P 500's 0.41% loss on the day. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq added 0.07%.

Coming into today, shares of the investment bank had lost 0.96% in the past month. In that same time, the Finance sector lost 3.73%, while the S&P 500 lost 5.13%.

Investors will be hoping for strength from Goldman Sachs as it approaches its next earnings release. The company is expected to report EPS of $7.93, down 46.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.46 billion, down 15.8% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.20 per share and revenue of $47.47 billion. These totals would mark changes of -42.47% and -20%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Goldman Sachs. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.53% lower within the past month. Goldman Sachs is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Goldman Sachs's current valuation metrics, including its Forward P/E ratio of 9.69. This represents a discount compared to its industry's average Forward P/E of 13.43.

Investors should also note that GS has a PEG ratio of 0.76 right now. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.88 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 204, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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