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Goldman Sachs Group Inc. (NYSE:GS) shares are down on Wednesday as the company faces challenges in managing earnings volatility, following a recent analyst report. The company is set to report fourth-quarter financial results Thursday before market open.
Here are the current analyst estimates for Goldman Sachs fourth quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for earnings per share in nine straight quarters and beaten analyst estimates for revenue in 10 straight quarters.
The stock carries a Hold Rating with an average price target of $765.47. Recent analyst moves include:
BofA Securities analyst Ebrahim H. Poonawala raised the price forecast for Goldman Sachs to $1,050 from $900 while maintaining a Buy rating. The analyst noted that CEO David Solomon‘s biggest challenge remains managing earnings volatility, which has been highlighted by a 56% drop in EPS from 2021 to 2023.
The report emphasizes that while cyclical and regulatory tailwinds support EPS growth, investors are concerned about the swings inherent in the capital markets business, which accounts for approximately 70% of total revenue. Poonawala estimates a 20% year-over-year rebound in investment banking revenue for FY26, alongside mid-single-digit growth in trading and financing.
Goldman Sachs is one of the most important stocks in the Dow Jones Industrial Average. With a price-weighted methodology for the index, Goldman Sachs is currently the top holding.
The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), which tracks the index, counts Goldman Sachs as the top holding at 11.74% of assets. That is significantly higher than second-place Caterpillar, which represents 7.96% of assets.
Goldman Sachs was the second-best performing of the 30 Dow Jones Industrial Average stocks in 2025 with a gain of 55.8%. The gain trailed only the 59.5% gain of Caterpillar.
A strong earnings report from Goldman Sachs could help boost the overall Dow Jones Industrial Average and the ETFs that track the index.
Goldman Sachs is currently trading 1.8% above its 20-day simple moving average (SMA) and 14% above its 100-day SMA, indicating a strong longer-term trend. Shares have increased 62.03% over the past 12 months and are currently positioned closer to their 52-week highs than lows.
The RSI is at 62.85, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is above its signal line, indicating bullish momentum.
The combination of neutral RSI and bullish MACD suggests mixed momentum.
Valuation Insight: While the stock trades at a fair P/E multiple, the consensus and 2% expected earnings decline suggest analysts view this growth as justification for the current valuation.
Below is the Benzinga Edge scorecard for Goldman Sachs Group Inc. (GS), highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Goldman Sachs Group Inc.’s Benzinga Edge signal reveals a strong momentum setup. While the Quality score indicates a healthy balance sheet, the high momentum score suggests that the stock is currently outperforming the broader market.
Significance: Because GS carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Goldman Sachs Group shares were down 1.24% at $933.50 at the time of publication on Wednesday, according to Benzinga Pro data. The stock has traded between $439.38 and $961.69 over the last 52 weeks.
Photo: Shutterstock
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