Goldman Sachs stock price forecast ahead of earnings

The Goldman Sachs (NYSE: GS) stock price retreated in the premarket session as investors waited for the company’s quarterly earnings scheduled for Tuesday. The stock declined by 0.42%, erasing some of the 3.57% gains it made on Friday last week. 

GS earnings ahead

Goldman Sachs is one of the biggest Wall Street banks with a market capitalisation of more than $126 billion. Like other banks, the Goldman stock price has jumped this year, helped by talk of high interest rates, optimism of the recovery, and increased payouts to investors. The stock is up by more than 20% this year and by more than 185% from its lowest level in 2020.

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Goldman Sachs will publish its quarterly results on Tuesday. Analysts expect that the company will deliver more than $12 billion in revenue and an earnings-per-share of $9.84. The company had a revenue and EPS of $17.6 billion and $18.76, respectively. This decline will be because the company brought forward some of its last year’s provisions to the first quarter. 

Analysts will be looking at the bank’s Fixed Income Commodities and Currencies (FICC) results. After doing well in the past few quarters, analysts expect that the segment slowed down as volatility in the market declined. The FICC segment generated $3.89 billion while its equities division had more than $3.69 billion. 

Its investment banking, asset management, and consumer & wealth management generated more than $3.77 billion, $4.61 billion, and $1.74 billion, respectively. 

Is Goldman stock a buy?

Analysts are generally optimistic about GS stock price. In a recent note, analysts at Keefe, Bruyette & Woods initiated the company with a target of $391. Other analysts like those at Evercore ISI, JMP Securities, and Jefferies are all optimistic. They believe that the stock will rise to more than $400 this year.

This optimism is based on the increased shareholder returns by the bank. In a recent statement, Goldman Sachs said that it will boost its dividend to $2. Also, investors are optimistic about the stock because of the upcoming infrastructure deal and the increased consolidation. The bank will benefit since it is a leading player in M&A events.

Goldman Sachs stock price analysis

The four-hour chart shows that the Goldman Sachs stock has been in a strong bullish trend recently. As a result, it has moved above the 50-day and 100-day exponential moving averages (EMA). It has also formed an ascending channel pattern that is shown in blue. It also seems like it has formed a double-bottom pattern. Therefore, the stock will likely keep rising as bulls target the YTD high at $393.

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