In the latest trading session, Goldman Sachs (GS) closed at $220.81, marking a +1.33% move from the previous day. This move outpaced the S&P 500's daily gain of 1.2%. Elsewhere, the Dow gained 1.7%, while the tech-heavy Nasdaq added 1.13%.
Investors will be hoping for strength from GS as it approaches its next earnings release. The company is expected to report EPS of $3.14, down 45.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.55 billion, down 9.68% from the year-ago period.
GS's full-year Zacks Consensus Estimates are calling for earnings of $13.81 per share and revenue of $34.12 billion. These results would represent year-over-year changes of -34.33% and -6.65%, respectively.
It is also important to note the recent changes to analyst estimates for GS. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.57% higher. GS is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that GS has a Forward P/E ratio of 15.78 right now. Its industry sports an average Forward P/E of 16.33, so we one might conclude that GS is trading at a discount comparatively.
It is also worth noting that GS currently has a PEG ratio of 6.6. 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 2.09 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 178, which puts it in the bottom 30% 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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