Goldman Sachs (GS) Faces Larger Decline Than Market: Key Insights

In the latest trading session, Goldman Sachs (GS - Free Report) closed at $614.91, reflecting a decline of -1.79% from the previous day's closing price. This drop was more significant than the broader market, with the S&P 500 experiencing a loss of only 0.47%. In contrast, the Dow Jones Industrial Average recorded a slight increase of 0.37%, while the technology-focused Nasdaq index suffered a decrease of 1.35%.

Over the past month, Goldman Sachs shares have seen a loss of 1.13%. This performance was worse than the Finance sector's overall decline of 0.21% and somewhat better than the S&P 500's decrease of 1.78% during the same period.

As investors look ahead, all eyes will be on Goldman Sachs' upcoming earnings report. Analysts predict that the bank will report earnings per share (EPS) of $12.64, marking a notable growth of 9.15% compared to the same quarter last year. Additionally, revenue is expected to reach $15.28 billion, representing a 7.5% increase from the previous year.

For the entire fiscal year, the Zacks Consensus Estimates suggest earnings of $47.12 per share and total revenue of $57.64 billion, both showing substantial year-over-year improvements of +16.23% for earnings and +7.71% for revenue.

Recent changes in analyst estimates for Goldman Sachs are also crucial for investors to consider. These revisions reflect the latest business trends and can shift over time. When analysts revise their EPS estimates upward, it usually indicates a positive outlook on the company's financial health and growth potential.

Research indicates that these changes in estimates tend to correlate with future stock performance. To aid investors, the Zacks Rank has been developed, which incorporates these estimate changes into its rating system.

The Zacks Rank operates on a scale from #1 (Strong Buy) to #5 (Strong Sell) and has a proven track record of outperforming the market, as verified by independent audits. Stocks rated #1 have delivered an average annual return of +25% since 1988. In the past 30 days, the Zacks Consensus EPS estimate for Goldman Sachs has increased slightly by 0.03%. Currently, Goldman Sachs holds a Zacks Rank of #1 (Strong Buy).

Valuation metrics also play a significant role in investment decisions. Goldman Sachs currently has a Forward P/E ratio of 13.29, while the average Forward P/E for its industry is 14, suggesting that Goldman Sachs might be trading at a discount.

Moreover, Goldman Sachs has a PEG ratio of 0.87. This metric, which accounts for both the company's stock price and its expected earnings growth rate, indicates a favorable valuation relative to the Financial - Investment Bank industry, which had an average PEG ratio of 1.15 as of the previous day's market close.

The Financial - Investment Bank industry is a key segment of the Finance sector and currently holds a Zacks Industry Rank of 3, positioning it in the top 2% of over 250 industries evaluated.

The Zacks Industry Rank assesses the performance of various industry groups based on the average Zacks Rank of individual stocks within those groups. Historically, industry groups in the top 50% have outperformed those in the bottom half by a ratio of 2 to 1.

Investors should keep a close watch on these metrics as they navigate upcoming trading sessions. For the latest updates and performance indicators related to Goldman Sachs and other stocks, regularly visit financial news platforms.

Goldman Sachs, Stocks, Earnings