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Goldman Sachs (GS) Gains As Market Dips: What You Should Know

In the latest trading session, Goldman Sachs (GS) closed at $383.71, marking a +0.35% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.02%.

Coming into today, shares of the investment bank had gained 10.99% in the past month. In that same time, the Finance sector gained 3.36%, while the S&P 500 gained 1.83%.

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 $6.62 per share. This would mark a year-over-year decline of 38.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11 billion, down 12.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $33.35 per share and revenue of $47.77 billion, which would represent changes of -43.9% and -19.49%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Goldman Sachs. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.19% lower. Goldman Sachs is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Goldman Sachs is holding a Forward P/E ratio of 11.47. This represents a discount compared to its industry's average Forward P/E of 14.91.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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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