Back to top

Image: Bigstock

Goldman Sachs (GS) Stock Moves -0.37%: What You Should Know

Read MoreHide Full Article

The latest trading session saw Goldman Sachs (GS - Free Report) ending at $386.99, denoting a -0.37% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.65%. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq depreciated by 1.16%.

The investment bank's shares have seen an increase of 0.88% over the last month, not keeping up with the Finance sector's gain of 4.79% and the S&P 500's gain of 3.4%.

Analysts and investors alike will be keeping a close eye on the performance of Goldman Sachs in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $8.62, marking a 1.93% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.05 billion, up 6.75% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $32.86 per share and revenue of $50.49 billion, which would represent changes of +43.68% and +9.16%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Goldman Sachs. Recent revisions tend to reflect the latest near-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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.42% higher. As of now, Goldman Sachs holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Goldman Sachs has a Forward P/E ratio of 11.82 right now. This expresses a discount compared to the average Forward P/E of 17.12 of its industry.

We can also see that GS currently has a PEG ratio of 1.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial - Investment Bank industry currently had an average PEG ratio of 1.17 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 37, positioning it in the top 15% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Goldman Sachs Group, Inc. (GS) - free report >>

Published in