Goldman Sachs (GS) closed the most recent trading day at $1,007.89, moving +1.15% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 0.91%.
Heading into today, shares of the investment bank had gained 10.03% over the past month, outpacing the Finance sector's gain of 1.37% and the S&P 500's gain of 4.96%.
Analysts and investors alike will be keeping a close eye on the performance of Goldman Sachs in its upcoming earnings disclosure. The company is forecasted to report an EPS of $13.71, showcasing a 25.66% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $15.75 billion, showing a 8.03% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $59.53 per share and a revenue of $63.69 billion, indicating changes of +16% and +9.28%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Goldman Sachs. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. Goldman Sachs is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Goldman Sachs has a Forward P/E ratio of 16.74 right now. This expresses a premium compared to the average Forward P/E of 12.83 of its industry.
Also, we should mention that GS has a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank was holding an average PEG ratio of 0.92 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 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.
To follow GS in the coming trading sessions, be sure to utilize Zacks.com.
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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).