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Goldman Sachs (GS) Exceeds Market Returns: Some Facts to Consider

In the latest trading session, Goldman Sachs (GS) closed at $457.43, marking a +1.61% move from the previous day. This change outpaced the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.03%.

Shares of the investment bank have depreciated by 2.76% over the course of the past month, underperforming the Finance sector's loss of 2.3% and the S&P 500's gain of 3.34%.

Analysts and investors alike will be keeping a close eye on the performance of Goldman Sachs in its upcoming earnings disclosure. The company's earnings report is set to go public on July 15, 2024. It is anticipated that the company will report an EPS of $8.87, marking a 187.99% rise compared to the same quarter of the previous year. 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $36.57 per share and revenue of $51.71 billion, indicating changes of +59.9% and +11.81%, respectively, compared to the previous year.


Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Goldman Sachs. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Goldman Sachs is currently sporting a Zacks Rank of #2 (Buy).

From a valuation perspective, Goldman Sachs is currently exchanging hands at a Forward P/E ratio of 12.31. For comparison, its industry has an average Forward P/E of 17.94, which means Goldman Sachs is trading at a discount to the group.

We can also see that GS currently has a PEG ratio of 0.91. 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 1.12 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 11% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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