Prior to today’s trading, shares of the investment bank had lost 1.07% over the past month. This has lagged the Finance sector’s gain of 3.25% and the S&P 500’s gain of 6.32% in that time.
Investors will be hoping for strength from GS as it approaches its next earnings release, which is expected to be April 14, 2021. The company is expected to report EPS of $9.46, up 204.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.5 billion, up 31.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $32.86 per share and revenue of $42.05 billion. These totals would mark changes of +32.82% and -5.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for GS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 8.88% higher within the past month. GS currently has a Zacks Rank of #1 (Strong Buy).
We can also see that GS currently has a PEG ratio of 0.5. 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. Financial – Investment Bank stocks are, on average, holding a PEG ratio of 1.5 based on yesterday’s closing prices.
The Financial – Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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.
To follow GS in the coming trading sessions, be sure to utilize Zacks.com.