Goldman Sachs (GS) Stock Sinks As Market Gains: What You Should Know
Goldman Sachs (GS) closed the most recent trading day at $372.92, moving -1.36% from the previous trading session. This change lagged the S&P 500's daily gain of 0.18%.
Prior to today's trading, shares of the investment bank had gained 2.52% over the past month. This has lagged the Finance sector's gain of 3.14% and outpaced the S&P 500's gain of 2.43% in that time.
GS will be looking to display strength as it nears its next earnings release. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $43.96 per share and revenue of $49.41 billion, which would represent changes of +77.69% and +10.89%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 0.52% higher. GS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, GS is holding a Forward P/E ratio of 8.6. Its industry sports an average Forward P/E of 12.29, so we one might conclude that GS is trading at a discount comparatively.
We can also see that GS currently has a PEG ratio of 0.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.29 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 128, putting it in the top 50% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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