Goldman Sachs (GS) closed the most recent trading day at $826.04, moving +1.23% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.54%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.65%.
Shares of the investment bank have appreciated by 3.27% over the course of the past month, outperforming the Finance sector's gain of 0.28%, and the S&P 500's loss of 0.8%.
The investment community will be closely monitoring the performance of Goldman Sachs in its forthcoming earnings report. The company is expected to report EPS of $11.52, down 3.6% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.44 billion, up 4.14% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $48.87 per share and a revenue of $59.26 billion, representing changes of +20.55% and +10.74%, respectively, from the prior year.
Any recent changes to analyst estimates for Goldman Sachs should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.63% rise in the Zacks Consensus EPS estimate. Goldman Sachs is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Goldman Sachs is presently trading at a Forward P/E ratio of 16.7. This signifies no noticeable deviation in comparison to the average Forward P/E of 16.7 for its industry.
We can additionally observe that GS currently boasts a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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