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The Goldman Sachs Group, Inc. is a world-renowned investment, banking and securities management firm providing a broad range of financial services to a diverse and substantial clientele.
The company operates in three business segments: major investments and trading, investment banking, securities services and asset management. Goldman Sachs has institutional clients, such as banks, corporations, asset managers, hedge funds, foundations, and governments.
With a large customer base across the globe, Goldman Sachs is considered one of the most successful investment banks in the world. She is also involved in many global projects and initiatives. But does that mean Goldman Sachs stock is worth buying?
This guide explains whether the stock is worth buying and what investors should consider before investing in it.
Current Goldman Sachs share price
The current Goldman Sachs share price is $ 403.05. It has a market cap of around $ 134.45 billion and an estimated target price of $ 459.62 over one year.
Just two business days ago, the stock price closed at $ 3,997.77, down 0.23% in price from the previous days. At that time, the daily loss of the S&P 500 was around 0.1%, while the Nasdaq was around 0.47%.
Goldman Sachs is expected to release its next earnings report on Jan. 18, 2022. The report will show whether the company can meet analysts’ expectations of $ 12.13 per share. Its projected value will show an annual growth of 0.41% for the company. The Zacks Consensus Estimate reports that the company’s revenue is $ 119.3 billion, 1.59% more than last year.
However, there are still a few days until Goldman Sachs releases this report. Thus, investors should be alert to upcoming estimates from analysts.
Is Goldman Sachs a Good Buy?
Although the Goldman Sachs share price fell a few days ago, it has since returned to its original price. This indicates that Goldman Sachs is worth buying for now.
But that’s not the only reason to invest in Goldman Sachs stocks.
Zacks Ranking System
Zacks Rank System is a system that displays the stock rankings of any stock exchange. He has a percentile rank for each stock that he ranks. The higher the percentile of a specific stock, the better. The ranking system also goes from 1 to 5, with 1 being the strongest “Buy” and 5 being the strongest “Sell”.
Zacks’ ranking system has a strong track record of performing well. Thus, its ranking is considered as a benchmark against which investors can make decisions. The ranking system also shows the future of Goldman Sachs stock and tells you how good it is compared to other stocks in its industry.
P / E ratio
The P / E ratio refers to the price / earnings ratio, and it tells investors how much they should pay for a stock based on its current earnings per share. A low P / E ratio suggests that the company is undervalued and vice versa.
Goldman Sachs has a PE ratio of 6.56 which is considered low. Most investors find it good to buy stocks in companies with a low P / E ratio because you are paying less for every dollar you get from those stocks.
Think of a lower P / E ratio as a low price – you get a good deal for a lower price. However, it is important to understand that company stocks are sometimes undervalued due to poor performance.
However, this is not true for Goldman Sachs. The company is doing well, which means you can rely on the P / E ratio to invest in Goldman Sachs stocks.
EPS is earnings per share, which is calculated by dividing a company’s earnings by the total number of shares of its common stock.
Higher EPS means the company’s profits have potentially increased significantly. This is good news for investors because it means that they will receive more dividends if they buy shares of this company. The score goes from 1 to 99, 99 being the best score.
Goldman Sachs has an EPS of 60.63 which might not be high compared to its competition, but still good enough that you should invest in it.
The PEG ratio is similar to the P / E ratio. The only difference between the two is that the PEG ratio also takes into account the expected growth rate of the company’s profits.
It shows the relationship between a stock’s price and its earnings per share, or EPS. The lower this number, the better off you are as an investor. The ratio ranges from 0 to 1. A PEG ratio greater than 1 means the stock is overvalued, which is not good news for an investor. Meanwhile, a ratio of less than 1 means the stock is undervalued and is a good buy.
Goldman Sachs stock has a PEG ratio of 0.88, indicating that the stock is currently undervalued. It means it’s a good buy.
To sum up, Goldman Sachs stock is a solid investment, given its favorable ratios, and the company is also on track in terms of earnings and plans for the new year.
Additionally, Zacks’ ranking system also rated Goldman Sachs shares as a buy. There are all signs that this is a good investment, especially for those interested in investing in the fixed income clearing company industry.
Remember, this analysis is based on numbers only, so it’s always important to do your own research before investing in a stock.
Good to know
Current Goldman Sachs stock ratios indicate that the stock is worth buying. However, investors should wait until the company releases its earnings reports before making any major investment decisions.
Data is correct as of January 11, 2022 and subject to change.
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