Goldman Sachs (GS) closed the most recent trading day at $318.44, moving -0.03% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 3.64%.
Heading into today, shares of the investment bank had lost 12.86% over the past month, lagging the Finance sector's loss of 7.8% and the S&P 500's gain of 0.07% in that time.
Goldman Sachs will be looking to display strength as it nears its next earnings release, which is expected to be April 18, 2023. On that day, Goldman Sachs is projected to report earnings of $8.54 per share, which would represent a year-over-year decline of 20.63%. Meanwhile, our latest consensus estimate is calling for revenue of $13.15 billion, up 1.65% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $32.72 per share and revenue of $50.28 billion. These totals would mark changes of +8.85% and +6.16%, respectively, from last year.
Any recent changes to analyst estimates for Goldman Sachs should also be noted by investors. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Goldman Sachs is currently a Zacks Rank #3 (Hold).
In terms of valuation, Goldman Sachs is currently trading at a Forward P/E ratio of 9.74. This valuation marks a discount compared to its industry's average Forward P/E of 11.94.
Meanwhile, GS's PEG ratio is currently 0.63. 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. The Financial - Investment Bank was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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