Goldman Sachs (GS) shares soared 11.8% in the last trading session to close at $516.87. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13% loss over the past four weeks.

Goldman Sachs witnessed a strong price increase driven by the President Donald Trump's announcement on April 9, 2025, of a 90-day suspension of tariffs for most trading partners, excluding China. The tariff suspension eased immediate worries about escalating trade wars, fostering a more favorable economic outlook. The expectation of improved economic conditions and increased market activity bolstered investors’ confidence in investment banking stocks like Goldman Sachs.

This investment bank is expected to post quarterly earnings of $12.72 per share in its upcoming report, which represents a year-over-year change of +9.8%. Revenues are expected to be $15.16 billion, up 6.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Goldman, the consensus EPS estimate for the quarter has been revised 4.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Goldman is a member of the Zacks Financial - Investment Bank industry. One other stock in the same industry, Stifel Financial (SF), finished the last trading session 12.9% higher at $86.34. SF has returned -18.5% over the past month.

For Stifel , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.85. This represents a change of +24.2% from what the company reported a year ago. Stifel currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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