Investment banking giant The Goldman Sachs Group, Inc. is a member of the Dow Jones Industrial Average and reports its first quarter earnings before the opening bell on Tuesday. Goldman stock has slightly outperformed the Dow 30 with a fractional year-to-date gain of 0.5% versus a loss of 1.5% for the average. Goldman stock closed Friday at $255.92, up 6.9% since its Feb. 9 low of $239.29 and down 7% from its all-time intraday high of $275.31 set on March 12.
Analysts expect Goldman to post earnings per share between $5.67 and $6.03 when it reports first quarter results on Tuesday. The company beat estimates in its past three quarters, and after its previous report on Jan. 17, a negative knee-jerk reaction saw the stock test and hold its 50-day simple moving average at $248.84. This was followed by a rally to $273.79 into Jan. 29 after the Dow 30 peaked at 26,616.71 on Jan. 26. The stock has been extremely volatile since this reaction.
For 2018, a trade war with China would hurt earnings for Goldman. Even so, earnings estimates have solidified moving into Tuesday’s report. At issue is how much of a positive earnings surprise is priced into the stock. Keep in mind that JPMorgan Chase & Co. , Citigroup Inc. and Wells Fargo & Company beat estimates on Friday, but each of these “too big to fail” money center banks slumped by about 2%. (See also: Why Big Bank Stocks Are About to Crumble.)
Investment bank Goldman Sachs reports earnings before the open on Tuesday with an elevated P/E ratio of 29.68 and a small dividend yield of 1.17%. …read more
Read more here: Goldman Sachs Reports Needing a Positive Reaction
Category: GS, JPM, C, WFC