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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 $359.92, moving -0.82% from the previous trading session. This change lagged the S&P 500's daily loss of 0.19%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the investment bank had lost 0.3% over the past month, lagging the Finance sector's gain of 3.08% and the S&P 500's gain of 4.7% in that time.

Goldman Sachs will be looking to display strength as it nears its next earnings release. In that report, analysts expect Goldman Sachs to post earnings of $6.62 per share. This would mark a year-over-year decline of 38.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11 billion, down 12.97% from the year-ago period.

GS's full-year Zacks Consensus Estimates are calling for earnings of $33.41 per share and revenue of $47.77 billion. These results would represent year-over-year changes of -43.8% and -19.49%, respectively.

Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.17% higher. Goldman Sachs is currently a Zacks Rank #3 (Hold).

Investors should also note Goldman Sachs's current valuation metrics, including its Forward P/E ratio of 10.86. For comparison, its industry has an average Forward P/E of 14.71, which means Goldman Sachs is trading at a discount to the group.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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