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GSK (GSK) Gains As Market Dips: What You Should Know

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GSK (GSK - Free Report) closed at $30.01 in the latest trading session, marking a +0.81% move from the prior day. This move outpaced the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Coming into today, shares of the drug developer had lost 11.21% in the past month. In that same time, the Medical sector lost 7.73%, while the S&P 500 lost 10.24%.

GSK will be looking to display strength as it nears its next earnings release. In that report, analysts expect GSK to post earnings of $1.04 per share. This would mark a year-over-year decline of 17.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.78 billion, down 29.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $34.49 billion, which would represent changes of -16.97% and -26.45%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for GSK. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.63% lower. GSK is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, GSK is currently trading at a Forward P/E ratio of 9.22. This valuation marks a discount compared to its industry's average Forward P/E of 19.16.

Also, we should mention that GSK has a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.27 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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