In the latest trading session, Goldman Sachs (GS) closed at $219.90, marking a +0.53% move from the previous day. This move outpaced the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Prior to today's trading, shares of the investment bank had gained 11.5% over the past month. This has outpaced the Finance sector's gain of 4.77% and the S&P 500's gain of 4.58% in that time.
GS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $5.53, down 11.89% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.62 billion, down 0.31% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.81 per share and revenue of $35.43 billion, which would represent changes of -9.75% and -2.04%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for GS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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% higher. GS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GS has a Forward P/E ratio of 9.59 right now. Its industry sports an average Forward P/E of 11.68, so we one might conclude that GS is trading at a discount comparatively.
Also, we should mention that GS has a PEG ratio of 0.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GS's industry had an average PEG ratio of 1.12 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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