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The Zacks Analyst Blog Highlights Goldman Sachs and Citigroup

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For Immediate Release

Chicago, IL – October 27, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Goldman Sachs Group Inc. (GS - Free Report) and Citigroup Inc. (C - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Buy Goldman & Citi on Solid Q3 Earnings, Attractive Valuation and Upside

The third-quarter 2026 earnings season is in full swing now. Most of the major investment banks have reported their quarterly financial numbers. Here, we recommend two giant investment banks to buy for various reasons. 

These are: The Goldman Sachs Group Inc. and Citigroup Inc.. Both investment banks have reported solid third-quarter 2026 earnings results. Year to date, these stocks have significantly lagged the benchmark S&P 500 Index. 

As a result, both stocks are currently available at attractive valuations along with impressive price upside potential in the short-term. Finally, each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Goldman Sachs Group Inc.

Goldman Sachs benefited from strong revenue growth in the Global Banking & Markets and Asset & Wealth Management businesses. Improving deal activity and robust equity trading of GS should support fee-income growth. 

Growing wealth assets, alternative fundraising and targeted acquisitions should expand GS' recurring revenues. Its strong capital and liquidity position should support long-term growth and shareholder return. GS has a current dividend yield of 2.28%.

Strong Estimate Revisions

Goldman Sachs has an expected revenue and earnings growth rate of 28% and 10.9%, respectively, for fourth-quarter 2026. The Zacks Consensus Estimate for the current quarter's earnings has improved 0.8% in the past seven days.

GS has an expected revenue and earnings growth rate of 1% and 4.3%, respectively, for the next year. The Zacks Consensus Estimate for next year's earnings has improved 0.5% in the past seven days.

Attractive Valuations

The stock has a forward P/E of 12.35X compared with the industry's P/E of 12.80X and the S&P 500's P/E of 18.63X. It has a P/S of 1.81X compared with the industry's P/S of 1.88X and the S&P 500's P/S of 3.10X. GS has a P/B of 2.04X compared with the industry's P/B of 2.46X and the S&P 500's P/B of 3.64X. 

Impressive Price Upside

The short-term average price target of brokerage firms represents an increase of 21.6% from the last closing price of $875.68. The brokerage target price is currently in the range of $875-$1,280. This indicates a maximum upside of 46.2% and no downside.

Citigroup Inc.

Citigroup benefited from higher net interest income (NII). Despite the Fed rate hike, improving loan demand is likely to aid NII in the future. C's simplified operating structure is improving efficiency and directing capital toward higher-return businesses, while expanding Citi Token Services in Japan and the UAE to support transaction banking growth. 

Expanding private-market capabilities may boost C's fee income, while strong liquidity and improving efficiency support capital returns. Citigroup is broadening its private-credit and private-market capabilities through partnerships and product innovation. C has a current dividend yield of 2.22%.

Strong Estimate Revisions

Citigroup has an expected revenue and earnings growth rate of 15.9% and 32%, respectively, for fourth-quarter 2026. The Zacks Consensus Estimate for the current quarter's earnings has improved 0.3% in the past seven days.

C has an expected revenue and earnings growth rate of 4.8% and 14.5%, respectively, for the next year. The Zacks Consensus Estimate for next year's earnings has improved 0.1% in the past seven days.

Attractive Valuations

The stock has a forward P/E of 10.55X compared with the industry's P/E of 12.80X and the S&P 500's P/E of 18.63X. It has a P/S of 1.17X compared with the industry's P/S of 1.88X and the S&P 500's P/S of 3.10X. C has a P/B of 1.06X compared with the industry's P/B of 2.46X and the S&P 500's P/B of 3.64X. 

Impressive Price Upside

The short-term average price target of brokerage firms represents an increase of 23.4% from the last closing price of $120.62. The brokerage target price is currently in the range of $110-$170. This indicates a maximum upside of 40.9% and no downside.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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