In the latest trading session, Goldman Sachs (GS) closed at $198.55, marking a -1.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 1.42%.
Prior to today's trading, shares of the investment bank had lost 4.32% over the past month. This has lagged the Finance sector's loss of 3.82% and the S&P 500's loss of 3.76% in that time.
Wall Street will be looking for positivity from GS as it approaches its next earnings report date. The company is expected to report EPS of $3.97, down 17.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.90 billion, up 6.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.06 per share and revenue of $39.47 billion, which would represent changes of -33.14% and +8%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GS. Recent revisions tend to reflect the latest near-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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.47% higher. GS currently has a Zacks Rank of #3 (Hold).
In terms of valuation, GS is currently trading at a Forward P/E ratio of 14.3. This valuation marks a premium compared to its industry's average Forward P/E of 13.06.
Also, we should mention that GS has a PEG ratio of 5.98. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.04 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
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