We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GSK (GSK) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
In the latest trading session, GSK (GSK - Free Report) closed at $36.93, marking a +0.41% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the drug developer had gained 4.94% over the past month, lagging the Medical sector's gain of 5.81% and the S&P 500's gain of 6.23% in that time.
Investors will be hoping for strength from GSK as it approaches its next earnings release. In that report, analysts expect GSK to post earnings of $0.88 per share. This would mark a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.55 billion, down 34.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.51 per share and revenue of $35.81 billion, which would represent changes of +1.45% and -9.81%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GSK. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GSK currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GSK has a Forward P/E ratio of 10.49 right now. For comparison, its industry has an average Forward P/E of 20.91, which means GSK is trading at a discount to the group.
We can also see that GSK currently has a PEG ratio of 1.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.98 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 79, which puts it in the top 32% 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.
To follow GSK in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GSK (GSK) Gains As Market Dips: What You Should Know
In the latest trading session, GSK (GSK - Free Report) closed at $36.93, marking a +0.41% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the drug developer had gained 4.94% over the past month, lagging the Medical sector's gain of 5.81% and the S&P 500's gain of 6.23% in that time.
Investors will be hoping for strength from GSK as it approaches its next earnings release. In that report, analysts expect GSK to post earnings of $0.88 per share. This would mark a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.55 billion, down 34.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.51 per share and revenue of $35.81 billion, which would represent changes of +1.45% and -9.81%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GSK. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GSK currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GSK has a Forward P/E ratio of 10.49 right now. For comparison, its industry has an average Forward P/E of 20.91, which means GSK is trading at a discount to the group.
We can also see that GSK currently has a PEG ratio of 1.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.98 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 79, which puts it in the top 32% 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.
To follow GSK in the coming trading sessions, be sure to utilize Zacks.com.