In the latest market close, Goldman Sachs (GS) reached $602.08, with a +0.06% movement compared to the previous day. The stock’s performance was ahead of the S&P 500’s daily gain of 0.05%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq increased by 0.4%.
Shares of the investment bank have appreciated by 17.64% over the course of the past month, outperforming the Finance sector’s gain of 7% and the S&P 500’s gain of 5.75%.
Market participants will be closely following the financial results of Goldman Sachs in its upcoming release. The company’s earnings per share (EPS) are projected to be $7.93, reflecting a 44.71% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.02 billion, indicating a 6.19% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $37.15 per share and revenue of $51.62 billion, which would represent changes of +62.44% and +11.6%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Goldman Sachs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.01% rise in the Zacks Consensus EPS estimate. Goldman Sachs currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Goldman Sachs is currently being traded at a Forward P/E ratio of 16.2. This signifies a discount in comparison to the average Forward P/E of 17.86 for its industry.
Also, we should mention that GS has a PEG ratio of 0.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The average PEG ratio for the Financial – Investment Bank industry stood at 1.52 at the close of the market yesterday.
The Financial – Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 19% echelons of all 250+ industries.
