Goldman Sachs (GS) closed the most recent trading day at $331.62, moving +1.33% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.16%.
Heading into today, shares of the investment bank had lost 7.49% over the past month, lagging the Finance sector's loss of 6.7% and outpacing the S&P 500's loss of 7.59% in that time.
Goldman Sachs will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $7.91, down 47.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 $34.18 per share and revenue of $47.47 billion. These totals would mark changes of -42.51% and -20%, respectively, from last year.
Any recent changes to analyst estimates for Goldman Sachs should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Goldman Sachs is currently a Zacks Rank #3 (Hold).
Digging into valuation, Goldman Sachs currently has a Forward P/E ratio of 9.58. Its industry sports an average Forward P/E of 13.56, so we one might conclude that Goldman Sachs is trading at a discount comparatively.
Also, we should mention that GS has a PEG ratio of 0.75. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.91 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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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