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GSK (GSK) Gains As Market Dips: What You Should Know
GSK (GSK - Free Report) closed at $35.61 in the latest trading session, marking a +1.19% move from the prior day. This move outpaced the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 10.92%.
Heading into today, shares of the drug developer had lost 0.31% over the past month, lagging the Medical sector's loss of 0.24% and the S&P 500's gain of 2.18% in that time.
Wall Street will be looking for positivity from GSK as it approaches its next earnings report date. This is expected to be February 1, 2023. The company is expected to report EPS of $0.59, down 31.4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.3 billion, down 35.36% from the year-ago period.
Investors might also notice recent changes to analyst estimates for GSK. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. GSK is currently a Zacks Rank #3 (Hold).
Digging into valuation, GSK currently has a Forward P/E ratio of 10.29. This valuation marks a discount compared to its industry's average Forward P/E of 20.91.
It is also worth noting that GSK currently has a PEG ratio of 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.61 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.