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Goldman Sachs (GS) Outperforms Broader Market: What You Need to Know

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Goldman Sachs (GS - Free Report) closed at $386.44 in the latest trading session, marking a +0.91% move from the prior day. This change outpaced the S&P 500's 0.18% gain on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.1%.

Shares of the investment bank have appreciated by 11.12% over the course of the past month, outperforming the Finance sector's gain of 4.37% and the S&P 500's gain of 2.75%.

Investors will be eagerly watching for the performance of Goldman Sachs in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 16, 2024. The company is expected to report EPS of $4.76, up 43.37% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $10.96 billion, indicating a 3.43% upward movement from the same quarter last year.

Investors might also notice recent changes to analyst estimates for Goldman Sachs. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.87% decrease. Goldman Sachs currently has a Zacks Rank of #4 (Sell).

Looking at valuation, Goldman Sachs is presently trading at a Forward P/E ratio of 11.93. This valuation marks a discount compared to its industry's average Forward P/E of 15.36.

Investors should also note that GS has a PEG ratio of 1.61 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 1.29 as trading concluded yesterday.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 219, this industry ranks in the bottom 14% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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