Benzinga - by Zacks, Benzinga Contributor.
Goldman Sachs (NYSE: GS) closed the most recent trading day at $457.17, moving -0.57% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.74%. Meanwhile, the Dow experienced a drop of 1.06%, and the technology-dominated Nasdaq saw a decrease of 0.58%.
The investment bank's stock has climbed by 7.76% in the past month, exceeding the Finance sector's gain of 2.34% and the S&P 500's gain of 4.27%.
The investment community will be closely monitoring the performance of Goldman Sachs in its forthcoming earnings report. In that report, analysts expect Goldman Sachs to post earnings of $8.87 per share. This would mark year-over-year growth of 187.99%. In the meantime, our current consensus estimate forecasts the revenue to be $12.76 billion, indicating a 17.12% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $36.57 per share and a revenue of $51.71 billion, indicating changes of +59.9% and +11.81%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Goldman Sachs. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.98% increase. Goldman Sachs is holding a Zacks Rank of #1 (Strong Buy) right now.
In the context of valuation, Goldman Sachs is at present trading with a Forward P/E ratio of 12.57. This valuation marks a discount compared to its industry's average Forward P/E of 18.
We can additionally observe that GS currently boasts a PEG ratio of 0.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. GS's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% 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.
To read this article on Zacks.com click here.