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GSK (GSK) Gains But Lags Market: What You Should Know
GSK (GSK - Free Report) closed at $35.05 in the latest trading session, marking a +0.34% move from the prior day. This change lagged the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.
Prior to today's trading, shares of the drug developer had lost 2.65% over the past month. This has was narrower than the Medical sector's loss of 3.29% and the S&P 500's loss of 2.95% in that time.
GSK will be looking to display strength as it nears 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, our latest consensus estimate is calling for revenue of $8.55 billion, down 34.8% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.50 per share and revenue of $35.81 billion, which would represent changes of +1.16% and -9.81%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. Within the past 30 days, our consensus EPS projection has moved 1.03% lower. GSK is currently a Zacks Rank #3 (Hold).
Looking at its valuation, GSK is holding a Forward P/E ratio of 9.98. For comparison, its industry has an average Forward P/E of 18.52, which means GSK is trading at a discount to the group.
We can also see that GSK currently has a PEG ratio of 1.76. 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. GSK's industry had an average PEG ratio of 1.67 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.