Goldman Sachs (GS) closed at $212.36 in the latest trading session, marking a -0.77% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.73%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 2.07%.
Coming into today, shares of the investment bank had lost 6.03% in the past month. In that same time, the Finance sector lost 7.4%, while the S&P 500 lost 7.09%.
GS will be looking to display strength as it nears its next earnings release, which is expected to be January 16, 2019. In that report, analysts expect GS to post earnings of $6.23 per share. This would mark year-over-year growth of 9.68%. Meanwhile, our latest consensus estimate is calling for revenue of $8.26 billion, up 5.46% from the prior-year quarter.
GS's full-year Zacks Consensus Estimates are calling for earnings of $25.43 per share and revenue of $36.41 billion. These results would represent year-over-year changes of +28.69% and +13.53%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.99% higher. GS is currently a Zacks Rank #3 (Hold).
Digging into valuation, GS currently has a Forward P/E ratio of 8.42. This represents a discount compared to its industry's average Forward P/E of 12.21.
Meanwhile, GS's PEG ratio is currently 0.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. GS's industry had an average PEG ratio of 0.74 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.