Goldman Sachs (GS) closed at $169.25 in the latest trading session, marking a -1.31% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.54%. At the same time, the Dow lost 1.49%, and the tech-heavy Nasdaq lost 2.17%.
Coming into today, shares of the investment bank had lost 10.37% in the past month. In that same time, the Finance sector lost 7.86%, while the S&P 500 lost 6.77%.
Investors will be hoping for strength from GS as it approaches its next earnings release, which is expected to be January 16, 2019. The company is expected to report EPS of $6.12, up 7.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.26 billion, up 5.46% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $25.33 per share and revenue of $36.34 billion, which would represent changes of +28.19% and +13.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. GS is currently a Zacks Rank #4 (Sell).
Digging into valuation, GS currently has a Forward P/E ratio of 6.77. This valuation marks a discount compared to its industry's average Forward P/E of 11.46.
We can also see that GS currently has a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GS's industry had an average PEG ratio of 0.76 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 73, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
The Goldman Sachs Group, Inc. (NYSE:GS): Free Stock Analysis Report
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