Goldman Sachs (GS) Flat As Market Gains: What You Should Know
In the latest trading session, Goldman Sachs (GS) closed at $357.53, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.51%.
Heading into today, shares of the investment bank had lost 2.92% over the past month, lagging the Finance sector's loss of 0.8% and the S&P 500's gain of 1.75% in that time.
Wall Street will be looking for positivity from GS as it approaches its next earnings report date. In that report, analysts expect GS to post earnings of $9.15 per share. This would mark year-over-year growth of 46.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.19 billion, down 15.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $44.70 per share and revenue of $49.7 billion. These totals would mark changes of +80.68% and +11.53%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for GS. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 2.28% higher. GS is currently a Zacks Rank #3 (Hold).
Digging into valuation, GS currently has a Forward P/E ratio of 8. This represents a discount compared to its industry's average Forward P/E of 11.34.
It is also worth noting that GS currently has a PEG ratio of 0.31. 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. The Financial - Investment Bank industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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