In the latest trading session, Goldman Sachs (GS - Free Report) closed at $176.47, marking a +0.63% move from the previous day. This change outpaced the S&P 500's 0.48% gain on the day. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.8%.
Prior to today's trading, shares of the investment bank had lost 0.81% over the past month. This has was narrower than the Finance sector's loss of 1.39% and the S&P 500's loss of 2.09% in that time.
GS will be looking to display strength as it nears its next earnings release, which is expected to be January 16, 2019. In that report, analysts expect GS to post earnings of $5.82 per share. This would mark year-over-year growth of 2.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.90 billion, up 0.85% from the year-ago period.
It is also important to note the recent changes to analyst estimates for GS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 moved 3.37% lower. GS currently has a Zacks Rank of #4 (Sell).
Digging into valuation, GS currently has a Forward P/E ratio of 7.04. For comparison, its industry has an average Forward P/E of 10.98, which means GS is trading at a discount to the group.
Meanwhile, GS's PEG ratio is currently 0.58. 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. The Financial - Investment Bank industry currently had an average PEG ratio of 0.78 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 107, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.