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Goldman Plans to Provide Outlook for Metrics in January

Zacks Equity Research

The Goldman Sachs Group Inc. GS is planning to provide outlook for a wider range of financial metrics at its investor day to be held in January. The news was reported by Bloomberg.

Also, the company is looking to move away from its target to find $5 billion in fresh annual revenues by 2020, which was put forth in 2017, to expand in sources other than trading business. Per people familiar with the matter, Goldman can provide goals for its retail bank, Marcus.

Fear of global slowdown and trade war concerns have kept investors wary and keen to know about the company’s future plans. Also, investors have concerns over Goldman’s exposure to unpredictable trading revenues. Thus, it is planning to increase transparency with investors amid tough times.

Chief Executive Officer David Solomon had planned a strategic update earlier in 2019, which was later postponed as he wanted to be sure about the targets.

Goldman has been focused on digitizing operations and building consumer lending operations for quite some time. In 2016, it had launched online bank — Marcus by Goldman — which has been delivering promising results. While it is on track to remodel its business into a more profitable organization, it continues to face several legal investigations, which are likely to keep costs elevated.

The Zacks Rank #3 (Hold) stock has rallied 31.1% over the past six months compared with 12% growth of the industry it belongs to.

A few better-ranked stocks from the finance space are Federated Investors, Inc. FII, Eaton Vance Corporation EV and Nomura Holdings Inc ADR NMR. All these stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Over the past 30 days, Federated has witnessed upward earnings estimate revision for the current year. Its shares have gained 9% in the past six months.

Eaton Vance’s earnings estimates for 2019 have remained stable over the past 30 days. Shares of the company have gained 29.3% in the past six months.

Nomura Holdings earnings estimates for the current year have been revised upward over the past 30 days. Shares of the company have gained 40.9% in the past six months.

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