Building an investment portfolio from scratch can be difficult, especially if you're new to investing. It's easy to feel overwhelmed with so many different investment options out there, but focusing on stocks that are set to outperform the market over the next 12 months is an excellent place to start.

Now, let's take a deep dive into a great stock that could be just the right addition to your portfolio.

Founded in 1869, The Goldman Sachs Group, Inc. is a leading global financial holding company providing IB, securities, investment management, and consumer banking services to a diversified client base. The company is headquartered in New York, with offices in major financial centers globally.

Since being added to the Zacks Focus List on July 11, 2018 at $226.85 per share, shares of GS have increased 228.52% to $745.25.

For fiscal 2025, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.51 to $45.63. GS boasts an average earnings surprise of 24.4%.

Additionally, Goldman Sachs' earnings are expected to grow 12.6% for the current fiscal year.

Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like GS, then, you're likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.

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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report

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

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