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

Goldman Sachs (GS) closed at $194.95 in the latest trading session, marking a -0.08% move from the prior day. This change lagged the S&P 500's daily gain of 1.6%. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq added 2.26%.

Prior to today's trading, shares of the investment bank had lost 7.16% over the past month. This has lagged the Finance sector's loss of 5.95% and the S&P 500's loss of 5.3% in that time.

Wall Street will be looking for positivity from GS as it approaches its next earnings report date. In that report, analysts expect GS to post earnings of $4.46 per share. This would mark a year-over-year decline of 6.89%. Meanwhile, our latest consensus estimate is calling for revenue of $8.53 billion, up 2.5% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.28 per share and revenue of $39.19 billion, which would represent changes of -41.61% and +7.23%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for GS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GS is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, GS currently has a Forward P/E ratio of 15.88. This valuation marks a premium compared to its industry's average Forward P/E of 12.54.

We can also see that GS currently has a PEG ratio of 6.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GS's industry had an average PEG ratio of 1 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.

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


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