Goldman Sachs (GS) Stock Sinks As Market Gains: What You Should Know

Goldman Sachs (GS) closed at $1,021.65 in the latest trading session, marking a -1.81% move from the prior day. This change lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.16%.

The investment bank's stock has dropped by 4.15% in the past month, falling short of the Finance sector's gain of 1.78% and the S&P 500's gain of 3.25%.

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 $15.62, up 27.51% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $17.04 billion, indicating a 12.19% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $68.89 per share and a revenue of $69.56 billion, indicating changes of +34.24% and +19.35%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Goldman Sachs. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.94% higher. Goldman Sachs is currently a Zacks Rank #1 (Strong Buy).

With respect to valuation, Goldman Sachs is currently being traded at a Forward P/E ratio of 15.1. Its industry sports an average Forward P/E of 15.09, so one might conclude that Goldman Sachs is trading at a premium comparatively.

Meanwhile, GS's PEG ratio is currently 1.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Investment Bank industry currently had an average PEG ratio of 1.04 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 42, positioning it in the top 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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