Goldman Sachs (GS) closed at $196.54 in the latest trading session, marking a -0.74% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Prior to today's trading, shares of the investment bank had gained 16.81% over the past month. This has outpaced the Finance sector's gain of 8.9% and the S&P 500's gain of 7.92% in that time.
Investors will be hoping for strength from GS as it approaches its next earnings release, which is expected to be April 16, 2019. In that report, analysts expect GS to post earnings of $6.05 per share. This would mark a year-over-year decline of 12.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.74 billion, down 2.91% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.90 per share and revenue of $36.40 billion. These totals would mark changes of -5.42% and +0.64%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for GS. These recent revisions tend to reflect the evolving nature of short-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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.99% lower. GS is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that GS has a Forward P/E ratio of 8.28 right now. This valuation marks a discount compared to its industry's average Forward P/E of 12.82.
Also, we should mention that GS has a PEG ratio of 1.14. 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 1.05 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
The Goldman Sachs Group, Inc. (NYSE:GS): Free Stock Analysis Report
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