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Analyst Blog

Shares of The Goldman Sachs Group, Inc. (GS - Free Report) crafted a new 52-week high, touching $166.17 at the end of the trading session on Jun 7. The closing price of this Wall Street biggie represents a solid year-to-date return of 26.9%. The trading volume for the session was 5.7 million shares.

Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected year-over-year earnings growth of 2.2% for 2013.

Growth Drivers

Impressive first-quarter 2013 results – including a positive earnings surprise of 11.4% and a strong capital position – as well as approval of the capital plan under the 2013 Comprehensive Capital Analysis and Review (CCAR) were the primary growth drivers for Goldman.

On Apr 16, Goldman reported its first-quarter earnings per share of $4.29, significantly surpassing the Zacks Consensus Estimate of $3.85. Moreover, the reported earnings outpaced the prior-year quarter’s earnings of $3.92 per share.

Amid challenging global markets, better-than-expected results were driven by Goldman’s record revenues with an elevation in client activity. Moreover, decreased operating expenses reflect prudent expense management.

Additionally, Goldman has now delivered positive earnings surprises in the last 4 quarters with an average beat of 39.9%.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for 2013 increased by 1.2% to $14.44 per share. For 2014, the Zacks Consensus Estimate advanced 0.5% to $15.07 per share.   

Some better performing banks include Fifth Third Bancorp (FITB - Free Report) , JPMorgan Chase & Co. (JPM - Free Report) and State Street Corporation (STT - Free Report) . All these carry a Zacks Rank #2 (Buy).