Goldman Sachs Q4 Preview: Largest Dow Jones Industrial Average Holding Goes For 10th Straight Double Beat

Core Viewpoint - Goldman Sachs faces challenges in managing earnings volatility, impacting its stock performance ahead of the fourth-quarter financial results announcement [1] Earnings Forecast - Analyst estimates for Goldman Sachs' fourth quarter include an EPS estimate of $11.67 (down from $11.95 year-over-year) and a revenue estimate of $14.12 billion (up from $13.87 billion year-over-year) [9] Analyst Consensus & Recent Actions - The stock carries a Hold rating with an average price target of $765.47. BofA raised its target to $1,050 from $900 while maintaining a Buy rating, citing earnings volatility as a significant challenge for CEO David Solomon [4][10] - Other analysts have also raised their targets: JP Morgan to $775.00, Barclays to $1,048.00, and Keefe, Bruyette & Woods to $971.00 [10] Revenue and Growth Insights - Goldman Sachs has beaten analyst estimates for earnings per share for nine consecutive quarters and for revenue for ten consecutive quarters [3] - The capital markets business, which accounts for approximately 70% of total revenue, presents inherent swings that concern investors. However, a 20% year-over-year rebound in investment banking revenue is estimated for FY26, alongside mid-single-digit growth in trading and financing [5] Stock Performance and Trends - Goldman Sachs shares have increased 62.03% over the past 12 months and are currently trading 1.8% above its 20-day simple moving average and 14% above its 100-day simple moving average, indicating a strong long-term trend [8] - The stock was down 1.24% at $933.50 at the time of publication, with a 52-week trading range between $439.38 and $961.69 [15] Market Position and Importance - Goldman Sachs is a significant component of the Dow Jones Industrial Average, currently the top holding at 11.74% of assets in the SPDR Dow Jones Industrial Average ETF Trust [6] - A strong earnings report from Goldman Sachs could positively influence the overall Dow Jones Industrial Average and related ETFs [7] Valuation Insights - The stock trades at a fair P/E multiple of 19.1x, with analysts viewing the expected 2% earnings decline as justifiable for the current valuation [12] - The Benzinga Edge scorecard indicates strong momentum and a healthy balance sheet for Goldman Sachs, suggesting it is outperforming the broader market [13][16]