Goldman Sachs share price and Q1 2022 results preview

[MongiIG]

What to expect and how to trade Goldman Sachs’ upcoming results.

Source: Bloomberg

 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Friday 08 April 2022 

In this article we preview the upcoming Goldman Sachs results and look at how traders and brokers are placed leading into the event.

When are the Goldman Sachs results expected?

Goldman Sachs is set to release first quarter (Q1) 2022 results on the 14th of April 2022.

What is ‘The Street’s’ expectation for the Q1 2022 results?

‘The Street's’ expectations for the upcoming results are as follows:

- Revenue of $11.925 billion (-32.64% year-on-year - YOY)

- Earnings per share $8.99 (-51.67% YoY)

How to trade Goldman Sachs into the results

Source: Refinitiv

 

Refinitiv data shows a consensus analyst rating of ‘buy’ for Goldman.

The long-term price target of $429.10 suggests the share is currently trading at a discount of 37% to a perceived longer term fair value.

Source: IG

 

IG sentiment data shows that 93% of clients with open positions on the share (as of the 8th of April 2022) expect the price to rise over the near term, while 7% of these clients expect the price to fall.

Goldman Sachs - technical view

Source: ProRealTime

 

The long-term trend for Goldman remains down as the price trades firmly below the 200-day simple moving average (SMA).

In the short-term, however we have a bullish wedge formation (red lines) and oversold signal on the company. This suggests that we could see a short-term rebound within the longer term uptrend.

The rebound would be considered following a break (close) above wedge resistance at roughly $328.90. This scenario would consider a move back towards the 375.50 level.

Traders respecting the longer term downtrend would, however look for a bearish reversal before this level ($375.50) for short entry. Alternatively, a break below wedge support ($299.60) could also suggest short entry with $269.70 the next support target.

In summary

- Goldman Sachs is set to release Q1 2022 results on the 14th of April 2022

- Q1 2022 are expected to show a year-on-year decline in both revenue and earnings per share (EPS)

- Long-term broker consensus suggests the share is currently a ‘buy’, with a longer term price target of $429.10

- IG clients with open positions on the share are predominantly long

- The long-term price trend for Goldman remains down, although in the short-term a falling wedge and oversold signal suggest a short-term rebound.