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Goldman Sachs (GS) Exceeds Market Returns: Some Facts to Consider September 17, 2024
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Goldman Sachs (GS - Free Report) closed the most recent trading day at $485.39, moving +0.05% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.2%.
Shares of the investment bank have depreciated by 3.87% over the course of the past month, underperforming the Finance sector's gain of 2.72% and the S&P 500's gain of 1.54%.
The upcoming earnings release of Goldman Sachs will be of great interest to investors. The company's earnings per share (EPS) are projected to be $8.50, reflecting a 55.39% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.7 billion, indicating a 7.43% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.50 per share and revenue of $51.53 billion. These totals would mark changes of +55.23% and +11.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Goldman Sachs. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Currently, Goldman Sachs is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Goldman Sachs is currently being traded at a Forward P/E ratio of 13.66. This represents a discount compared to its industry's average Forward P/E of 16.57.
We can also see that GS currently has a PEG ratio of 0.75. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Goldman Sachs (GS - Free Report) closed the most recent trading day at $485.39, moving +0.05% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.2%.
Shares of the investment bank have depreciated by 3.87% over the course of the past month, underperforming the Finance sector's gain of 2.72% and the S&P 500's gain of 1.54%.
The upcoming earnings release of Goldman Sachs will be of great interest to investors. The company's earnings per share (EPS) are projected to be $8.50, reflecting a 55.39% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.7 billion, indicating a 7.43% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.50 per share and revenue of $51.53 billion. These totals would mark changes of +55.23% and +11.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Goldman Sachs. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Currently, Goldman Sachs is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Goldman Sachs is currently being traded at a Forward P/E ratio of 13.66. This represents a discount compared to its industry's average Forward P/E of 16.57.
We can also see that GS currently has a PEG ratio of 0.75. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.