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GSK (GSK) Gains But Lags Market: What You Should Know
GSK (GSK - Free Report) closed the most recent trading day at $33.72, moving +0.6% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.68%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, lost 1.7%.
Coming into today, shares of the drug developer had lost 7.48% in the past month. In that same time, the Medical sector lost 5.62%, while the S&P 500 lost 6.68%.
Investors will be hoping for strength from GSK as it approaches its next earnings release. On that day, GSK is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 22.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.55 billion, down 34.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.50 per share and revenue of $35.81 billion. These totals would mark changes of +1.16% and -9.81%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for GSK. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.17% lower within the past month. GSK is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note GSK's current valuation metrics, including its Forward P/E ratio of 9.58. This represents a discount compared to its industry's average Forward P/E of 18.05.
Also, we should mention that GSK has a PEG ratio of 1.69. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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.
To follow GSK in the coming trading sessions, be sure to utilize Zacks.com.