Goldman Sachs (GS) closed the most recent trading day at $291.38, moving -1.1% from the previous trading session. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the investment bank had lost 11.77% over the past month, lagging the Finance sector's loss of 9.32% and the S&P 500's loss of 9.7% in that time.
Investors will be hoping for strength from Goldman Sachs as it approaches its next earnings release. In that report, analysts expect Goldman Sachs to post earnings of $7.91 per share. This would mark a year-over-year decline of 47.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.46 billion, down 15.8% from the year-ago period.
GS's full-year Zacks Consensus Estimates are calling for earnings of $34.18 per share and revenue of $47.47 billion. These results would represent year-over-year changes of -42.51% and -20%, respectively.
It is also important to note the recent changes to analyst estimates for Goldman Sachs. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Goldman Sachs is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Goldman Sachs is holding a Forward P/E ratio of 8.62. Its industry sports an average Forward P/E of 12.16, so we one might conclude that Goldman Sachs is trading at a discount comparatively.
It is also worth noting that GS currently has a PEG ratio of 0.67. 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 0.89 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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