Goldman Sachs (GS) Surpasses Market Returns: Some Facts Worth Knowing

Goldman Sachs (GS) ended the recent trading session at $1,058.88, demonstrating a +2.18% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.66%.

The investment bank's stock has dropped by 1.14% in the past month, falling short of the Finance sector's gain of 1.81% and the S&P 500's gain of 3.34%.

The investment community will be paying close attention to the earnings performance of Goldman Sachs in its upcoming release. In that report, analysts expect Goldman Sachs to post earnings of $15.62 per share. This would mark year-over-year growth of 27.51%. Alongside, our most recent consensus estimate is anticipating revenue of $17.04 billion, indicating a 12.19% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $68.89 per share and a revenue of $70.57 billion, representing changes of +34.24% and +21.09%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Goldman Sachs. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Goldman Sachs is holding a Zacks Rank of #1 (Strong Buy) right now.

From a valuation perspective, Goldman Sachs is currently exchanging hands at a Forward P/E ratio of 15.04. For comparison, its industry has an average Forward P/E of 14.65, which means Goldman Sachs is trading at a premium to the group.

One should further note that GS currently holds a PEG ratio of 1.05. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial - Investment Bank industry currently had an average PEG ratio of 1.02 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 34, placing it within the top 14% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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This article originally published on Zacks Investment Research (zacks.com).

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