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Here's Why Goldman Sachs (GS) Fell More Than Broader Market

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Goldman Sachs (GS - Free Report) closed at $941.02 in the latest trading session, marking a -1.51% move from the prior day. This change lagged the S&P 500's 0.34% loss on the day. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.16%.

Shares of the investment bank witnessed a gain of 9% over the previous month, beating the performance of the Finance sector with its gain of 3.09%, and the S&P 500's gain of 1.19%.

Analysts and investors alike will be keeping a close eye on the performance of Goldman Sachs in its upcoming earnings disclosure. The company's earnings report is set to go public on January 15, 2026. The company's upcoming EPS is projected at $11.6, signifying a 2.93% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $14.53 billion, reflecting a 4.74% rise from the equivalent quarter last year.

GS's full-year Zacks Consensus Estimates are calling for earnings of $48.99 per share and revenue of $59.33 billion. These results would represent year-over-year changes of +20.84% and 0%, respectively.

Investors should also note any recent changes to analyst estimates for Goldman Sachs. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

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.

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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.68% upward. Goldman Sachs is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Goldman Sachs's current valuation metrics, including its Forward P/E ratio of 17.3. This valuation marks a premium compared to its industry average Forward P/E of 16.75.

It's also important to note that GS currently trades at a PEG ratio of 1.12. 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. GS's industry had an average PEG ratio of 1.1 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 43% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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