In the latest trading session, Goldman Sachs (GS – Free Report) closed at $580.02, marking a -0.02% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.
The the stock of investment bank has fallen by 2.12% in the past month, leading the Finance sector’s loss of 4.27% and the S&P 500’s loss of 2.7%.
The investment community will be closely monitoring the performance of Goldman Sachs in its forthcoming earnings report. The company is predicted to post an EPS of $7.87, indicating a 43.61% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.15 billion, reflecting a 7.36% rise from the equivalent quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Goldman Sachs. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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 0.74% higher. Right now, Goldman Sachs possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, Goldman Sachs is currently exchanging hands at a Forward P/E ratio of 13.44. This expresses a discount compared to the average Forward P/E of 14.64 of its industry.
We can also see that GS currently has a PEG ratio of 0.69. 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 1.27 as of yesterday’s close.
The Financial – Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 19, this industry ranks in the top 8% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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