Goldman Sachs (GS) Outpaces Stock Market Gains: What You Should Know – February 21, 2024


Goldman Sachs (GS Free Report) closed the most recent trading day at $388.27, moving +0.98% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.13% for the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.32%.

Shares of the investment bank witnessed a gain of 0.98% over the previous month, trailing the performance of the Finance sector with its gain of 3.63% and the S&P 500’s gain of 2.99%.

The investment community will be closely monitoring the performance of Goldman Sachs in its forthcoming earnings report. It is anticipated that the company will report an EPS of $8.62, marking a 1.93% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $13.05 billion, indicating a 6.75% growth compared to the corresponding quarter of the prior year.

GS’s full-year Zacks Consensus Estimates are calling for earnings of $32.66 per share and revenue of $50.49 billion. These results would represent year-over-year changes of +42.81% and +9.16%, respectively.

It’s also important for investors to be aware of any recent modifications to analyst estimates for Goldman Sachs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.43% higher. Goldman Sachs presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Goldman Sachs has a Forward P/E ratio of 11.77 right now. Its industry sports an average Forward P/E of 16.79, so one might conclude that Goldman Sachs is trading at a discount comparatively.

We can also see that GS currently has a PEG ratio of 1.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As the market closed yesterday, the Financial – Investment Bank industry was having an average PEG ratio of 1.16.

The Financial – Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 30, finds itself in the top 12% echelons of all 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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2024-02-21 23:49:48

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