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Goldman Sachs (GS) Gains As Market Dips: What You Should Know

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Zacks Equity Research
·3 min read
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Goldman Sachs (GS) closed the most recent trading day at $334.43, moving +1.05% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.31%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 2.7%.

Heading into today, shares of the investment bank had gained 15.32% over the past month, outpacing the Finance sector's gain of 6.16% and the S&P 500's gain of 1.32% in that time.

GS will be looking to display strength as it nears its next earnings release, which is expected to be April 14, 2021. On that day, GS is projected to report earnings of $7.50 per share, which would represent year-over-year growth of 141.16%. Our most recent consensus estimate is calling for quarterly revenue of $10.32 billion, up 18% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $29.41 per share and revenue of $40.29 billion, which would represent changes of +18.88% and -9.58%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 2.96% higher. GS is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, GS currently has a Forward P/E ratio of 11.25. For comparison, its industry has an average Forward P/E of 13.09, which means GS is trading at a discount to the group.

We can also see that GS currently has a PEG ratio of 0.59. 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 was holding an average PEG ratio of 1.4 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 4, which puts it in the top 2% 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.

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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