In the latest trading session, Goldman Sachs (GS) closed at $386.25, marking a +0.62% move from the previous day. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the investment bank had gained 15.48% in the past month. In that same time, the Finance sector gained 9.23%, while the S&P 500 gained 6.89%.
Investors will be hoping for strength from Goldman Sachs as it approaches its next earnings release. The company is expected to report EPS of $6.62, down 38.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11 billion, down 12.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.35 per share and revenue of $47.77 billion, which would represent changes of -43.9% and -19.49%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Goldman Sachs. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 has moved 1.19% lower. Goldman Sachs currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Goldman Sachs is currently trading at a Forward P/E ratio of 11.51. For comparison, its industry has an average Forward P/E of 13.77, which means Goldman Sachs is trading at a discount to the group.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GS in the coming trading sessions, be sure to utilize Zacks.com.
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