In the latest trading session, Goldman Sachs (GS) closed at $916.04, marking a +1.2% move from the previous day. This move outpaced the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.14%.
Prior to today's trading, shares of the investment bank had lost 5.91% lagged the Finance sector's loss of 1.62% and the S&P 500's loss of 1.43%.
Analysts and investors alike will be keeping a close eye on the performance of Goldman Sachs in its upcoming earnings disclosure. On that day, Goldman Sachs is projected to report earnings of $16.12 per share, which would represent year-over-year growth of 14.16%. In the meantime, our current consensus estimate forecasts the revenue to be $16.74 billion, indicating a 11.16% growth compared to the corresponding quarter of the prior year.
GS's full-year Zacks Consensus Estimates are calling for earnings of $56.62 per share and revenue of $63.29 billion. These results would represent year-over-year changes of +10.33% and +8.58%, respectively.
Investors might also notice recent changes to analyst estimates for Goldman Sachs. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. Goldman Sachs is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Goldman Sachs is presently trading at a Forward P/E ratio of 15.99. This indicates a premium in contrast to its industry's Forward P/E of 14.15.
It's also important to note that GS currently trades at a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.15.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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