The Chaikin Power Gauge RatingTM stock report for Goldman Sachs Group, Inc. $GS is bullish due to very attractive financial metrics. The rating also reflects bearish price/volume activity and very weak earnings performance. GS’s financial metrics are excellent due to a low price to book value and relatively high cash flow.
Financial Metrics Rating – Very Bullish
GS’s financial metrics are excellent. The company may be undervalued and generates high free cash flow relative to market capitalization. The rank is based on a high long-term debt to equity ratio relative to its industry group, low price to book value, low return on equity, low price to sales ratio and relatively high cash flow.
Earnings Performance Rating – Very Bearish
GS’s earnings performance has been very weak. The company has not met analysts’ earnings estimates and experienced relatively poor earnings growth in the past 12 months. The rank is based on worse than expected earnings in recent quarters, a relatively poor trend in earnings this year, a relatively high projected P/E ratio and inconsistent earnings over the past 5 years.
Price/Volume Activity Rating – Bearish
Price and volume activity for GS is bearish. GS is in a decelerating price trend
compared to 4 months ago and is trading on lower volume than its 90 day average volume. The rank for GS is based on a positive Chaikin price trend, a negative Chaikin price trend ROC and a decreasing volume trend.
Expert Opinions – Neutral
Expert opinions about GS are neutral. Shorting of GS is low and analysts are lowering their EPS estimates for GS. The rank for GS is based on analysts revising earnings estimates downward, a low short interest ratio, insiders purchasing stock, optimistic analyst opinions and relative weakness of the stock versus the Invest BKRS-MGRS industry group.