Why Goldman Sachs (GS) Dipped More Than Broader Market Today

Goldman Sachs (GS) ended the recent trading session at $1,002.56, demonstrating a -2.28% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.71%. Meanwhile, the Dow experienced a drop of 0.79%, and the technology-dominated Nasdaq saw a decrease of 1.03%.

Heading into today, shares of the investment bank had lost 0.11% over the past month, lagging the Finance sector's gain of 0.84% and the S&P 500's gain of 2.72%.

The investment community will be paying close attention to the earnings performance of Goldman Sachs in its upcoming release. On that day, Goldman Sachs is projected to report earnings of $15.62 per share, which would represent year-over-year growth of 27.51%. 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $68.89 per share and revenue of $70.58 billion, indicating changes of +34.24% and +21.1%, respectively, compared to the previous year.

It is also important to note the 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant. 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 14.89. This denotes a premium relative to the industry average Forward P/E of 14.76.

One should further note that GS currently holds a PEG ratio of 1.04. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.02 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 32, positioning it in the top 14% of all 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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

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