Have you been paying attention to shares of Goldman Sachs (GS)? Shares have been on the move with the stock up 8.5% over the past month. The stock hit a new 52-week high of $809.66 in the previous session. Goldman has gained 40.6% since the start of the year compared to the 14.8% gain for the Zacks Finance sector and the 30.4% return for the Zacks Financial - Investment Bank industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 16, 2025, Goldman reported EPS of $10.91 versus consensus estimate of $9.43.
For the current fiscal year, Goldman is expected to post earnings of $46.44 per share on $57.07 in revenues. This represents a 14.55% change in EPS on a 6.64% change in revenues. For the next fiscal year, the company is expected to earn $52.95 per share on $60.6 in revenues. This represents a year-over-year change of 14.02% and 6.18%, respectively.
Valuation Metrics
While Goldman has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Goldman has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.3X. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 14.3X. Additionally, the stock has a PEG ratio of 1.68. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Goldman currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Goldman meets the list of requirements. Thus, it seems as though Goldman shares could still be poised for more gains ahead.
How Does GS Stack Up to the Competition?
Shares of GS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Interactive Brokers Group, Inc. (IBKR). IBKR has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Interactive Brokers Group, Inc. beat our consensus estimate by 10.87%, and for the current fiscal year, IBKR is expected to post earnings of $1.96 per share on revenue of $5.68 billion.
Shares of Interactive Brokers Group, Inc. have gained 4.2% over the past month, and currently trade at a forward P/E of 33.18X and a P/CF of 127.52X.
The Financial - Investment Bank industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GS and IBKR, even beyond their own solid fundamental situation.
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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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