Goldman Sachs (GS) closed the most recent trading day at $304.67, moving -1.4% from the previous trading session. This change lagged the S&P 500's 1.03% loss on the day. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.33%.
Coming into today, shares of the investment bank had lost 6.52% in the past month. In that same time, the Finance sector lost 3.21%, while the S&P 500 lost 3.51%.
Goldman Sachs will be looking to display strength as it nears its next earnings release. On that day, Goldman Sachs is projected to report earnings of $7.89 per share, which would represent a year-over-year decline of 47.15%. Meanwhile, our latest consensus estimate is calling for revenue of $11.46 billion, down 15.8% from the prior-year quarter.
GS's full-year Zacks Consensus Estimates are calling for earnings of $34.11 per share and revenue of $47.1 billion. These results would represent year-over-year changes of -42.62% and -20.63%, respectively.
Investors might also notice recent changes to analyst estimates for Goldman Sachs. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. Goldman Sachs is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Goldman Sachs has a Forward P/E ratio of 9.06 right now. Its industry sports an average Forward P/E of 12.32, so we one might conclude that Goldman Sachs is trading at a discount comparatively.
We can also see that GS currently has a PEG ratio of 0.71. 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 0.89 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 87, putting it in the top 35% 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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