Goldman Sachs (NYSE: GS) shares continue to trade above the $320 support level ahead of Q1 earnings results. This bank will publish Q1 2021 results on Wednesday, April 14th, before the market open.
Fundamental analysis: The consensus EPS estimate stands around $10.19 (+227% Y/Y)
The Goldman Sachs Group is an American multinational investment bank that offers services in investment management, securities, asset management, prime brokerage, and securities underwriting. Goldman Sachs will report Q1 earnings results this Wednesday, and according to estimates, Q1 2021 results should be better than in the previous year.
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Securities analyst Erika Najarian from Bank of America recently raised 2021 EPS estimates for U.S. banks, and the consensus EPS estimate for Goldman Sachs stands around $10.19 (+227% Y/Y). The consensus revenue estimate is $12.6B (+44% Y/Y), and there are many positives around the stock right now.
“We think it is highly likely that net charge-offs, and therefore the release of the allowance for loan losses into EPS, will continue to surprise positively. Green shoots on loan growth, and more aggressive guidance on excess cash redeployment, are likely needed for the market to gain even more confidence in bank stocks,” said BofA Securities analyst Erika Najarian this Monday.
Over the last two years, Goldman Sachs has beaten EPS estimates 63% of the time, and in the previous three months, EPS estimates have seen 13 upward revisions. Revenue estimates have seen 11 upward revisions over the last three months, and it is essential to say that this bank has proven its stability during the Covid-19 pandemic.
Goldman Sachs increased its revenue in 2020 to $41.46B from $35.48B in 2019, and the growth projects will ensure that the numbers will be moving up in the future. Goldman Sachs continues to improve its position on the market, and if you are looking for a solid growing dividend income and good total return potential, shares of this bank are not a bad choice.
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Technical analysis: $340 represents a strong resistance level
Goldman Sachs shares have advanced more than 25% since the beginning of the year, and the current share price stands around $327. Goldman Sachs shares continue to trade in the buy zone ahead of Q1 earnings results, and for now, there is no risk of the trend reversal.
The current support levels are $320 and $300, $340 and $360, represent the important resistance levels. If the price jumps above $335, it would be a signal to buy Goldman Sachs shares, and the next target could be around $340 or even $350.
Rising above $350 supports the continuation of the bullish trend for shares of this bank, but if the price falls below $300, it would be a strong “sell” signal.
Goldman Sachs will report Q1 earnings results this Wednesday, and according to estimates, Q1 2021 results should be better than in the previous year. If the price jumps above $335, the next target could be around $340, but if the price falls below $300, it would be a strong “sell” signal.