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Goldman Sachs (GS) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, Goldman Sachs (GS - Free Report) closed at $406.25, marking a -1.87% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.23% for the day. Meanwhile, the Dow lost 1.36%, and the Nasdaq, a tech-heavy index, lost 1.4%.

Heading into today, shares of the investment bank had gained 6.27% over the past month, outpacing the Finance sector's gain of 2.76% and the S&P 500's gain of 1.61% in that time.

Market participants will be closely following the financial results of Goldman Sachs in its upcoming release. The company plans to announce its earnings on April 15, 2024. The company's upcoming EPS is projected at $8.74, signifying a 0.57% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $12.92 billion, up 5.68% from the prior-year quarter.

GS's full-year Zacks Consensus Estimates are calling for earnings of $33.18 per share and revenue of $50.27 billion. These results would represent year-over-year changes of +45.08% and +8.69%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Goldman Sachs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.97% higher. Right now, Goldman Sachs possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Goldman Sachs is at present trading with a Forward P/E ratio of 12.48. This valuation marks a discount compared to its industry's average Forward P/E of 16.9.

One should further note that GS currently holds a PEG ratio of 1.59. 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 average PEG ratio for the Financial - Investment Bank industry stood at 1.31 at the close of the market yesterday.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 38, placing it within the top 16% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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