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Goldman Sachs (GS) Outpaces Stock Market Gains: What You Should Know

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Goldman Sachs (GS - Free Report) closed at $192.60 in the latest trading session, marking a +0.66% move from the prior day. This move outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.

Prior to today's trading, shares of the investment bank had lost 7.93% over the past month. This has lagged the Finance sector's loss of 1.08% and the S&P 500's loss of 4.06% in that time.

Wall Street will be looking for positivity from GS as it approaches its next earnings report date. This is expected to be January 16, 2019. On that day, GS is projected to report earnings of $6.11 per share, which would represent year-over-year growth of 7.57%. Meanwhile, our latest consensus estimate is calling for revenue of $8.26 billion, up 5.46% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $25.32 per share and revenue of $36.34 billion. These totals would mark changes of +28.14% and +13.32%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for GS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 moved 0.41% lower. GS is currently a Zacks Rank #3 (Hold).

In terms of valuation, GS is currently trading at a Forward P/E ratio of 7.61. This valuation marks a discount compared to its industry's average Forward P/E of 12.43.

We can also see that GS currently has a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. GS's industry had an average PEG ratio of 0.82 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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