In the latest trading session, Goldman Sachs (GS) closed at $199.93, marking a +1.75% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.66%.
GS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.89, down 50.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.55 billion, down 9.68% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.46 per share and revenue of $34.12 billion, which would represent changes of -36% and -6.65%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GS. 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 company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. GS is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note GS's current valuation metrics, including its Forward P/E ratio of 14.6. This represents a discount compared to its industry's average Forward P/E of 14.63.
It is also worth noting that GS currently has a PEG ratio of 0.79. 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. GS's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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