In the latest trading session, Goldman Sachs (GS) closed at $215.23, marking a -0.85% move from the previous day. This change lagged the S&P 500's daily of 0%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, added 0.07%.
Prior to today's trading, shares of the investment bank had gained 8.17% over the past month. This has outpaced the Finance sector's gain of 5.19% and the S&P 500's gain of 4.25% in that time.
Investors will be hoping for strength from GS as it approaches its next earnings release. In that report, analysts expect GS to post earnings of $5.53 per share. This would mark a year-over-year decline of 11.94%. Our most recent consensus estimate is calling for quarterly revenue of $8.62 billion, down 0.31% from the year-ago period.
GS's full-year Zacks Consensus Estimates are calling for earnings of $22.81 per share and revenue of $35.43 billion. These results would represent year-over-year changes of -9.73% and -2.04%, respectively.
Investors should also note any recent changes to analyst estimates for GS. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. GS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, GS currently has a Forward P/E ratio of 9.52. This represents a discount compared to its industry's average Forward P/E of 11.87.
Also, we should mention that GS has a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.64 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 158, putting it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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