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Goldman Sachs (GS) Gains But Lags Market: What You Should Know

Zacks Equity Research

Goldman Sachs (GS) closed at $200.67 in the latest trading session, marking a +0.35% move from the prior day. The stock lagged the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 0.9%.

Coming into today, shares of the investment bank had lost 8.86% in the past month. In that same time, the Finance sector lost 4.34%, while the S&P 500 lost 2.38%.

GS will be looking to display strength as it nears its next earnings release. 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 $22.80 per share and revenue of $35.43 billion. These results would represent year-over-year changes of -9.77% and -2.04%, respectively.

Investors should also note any recent changes to analyst estimates for GS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. GS is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, GS is currently trading at a Forward P/E ratio of 8.77. Its industry sports an average Forward P/E of 10.58, so we one might conclude that GS is trading at a discount comparatively.

Investors should also note that GS has a PEG ratio of 0.73 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Investment Bank industry currently had an average PEG ratio of 1.01 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 32% 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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