In the latest close session, Goldman Sachs (GS) was up +1.93% at $933.73. This move outpaced the S&P 500's daily gain of 0.56%. On the other hand, the Dow registered a gain of 0.26%, and the technology-centric Nasdaq increased by 0.78%.
The stock of investment bank has fallen by 2.9% in the past month, lagging the Finance sector's loss of 1.23% and the S&P 500's loss of 1.27%.
The investment community will be paying close attention to the earnings performance of Goldman Sachs in its upcoming release. The company is expected to report EPS of $16.12, up 14.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.74 billion, up 11.16% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $56.62 per share and revenue of $63.29 billion, which would represent changes of +10.33% and +8.58%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Goldman Sachs. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 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 presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Goldman Sachs is currently trading at a Forward P/E ratio of 16.18. Its industry sports an average Forward P/E of 14.35, so one might conclude that Goldman Sachs is trading at a premium comparatively.
We can also see that GS currently has a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank industry currently had an average PEG ratio of 1.15 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 35, placing it within the top 15% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.
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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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