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Goldman Sachs (GS) Dips More Than Broader Markets: What You Should Know

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Goldman Sachs (GS - Free Report) closed the most recent trading day at $313.95, moving -0.84% from the previous trading session. This change lagged the S&P 500's 0.81% loss on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the investment bank had lost 1.5% in the past month. In that same time, the Finance sector lost 6.34%, while the S&P 500 lost 6.82%.

Goldman Sachs will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $8.65, down 42.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.63 billion, down 24.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $37.99 per share and revenue of $47.91 billion, which would represent changes of -36.1% and -19.25%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Goldman Sachs. Recent revisions tend to reflect the latest near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Goldman Sachs is currently a Zacks Rank #3 (Hold).

Digging into valuation, Goldman Sachs currently has a Forward P/E ratio of 8.33. Its industry sports an average Forward P/E of 11.15, so we one might conclude that Goldman Sachs is trading at a discount comparatively.

Also, we should mention that GS has a PEG ratio of 0.65. 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 0.75 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% 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.

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