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GSK (GSK) Moves 5.5% Higher: Will This Strength Last?

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GSK (GSK - Free Report) shares ended the last trading session 5.5% higher at $36.55. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.3% loss over the past four weeks.

This rise in share price can be attributed to GSK’s encouraging sales performance year to date, especially from its vaccine segment. The company is set to launch its RSV vaccine Arexvy during the upcoming fall season.

This drug developer is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of -4.6%. Revenues are expected to be $9.63 billion, up 4.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For GSK, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on GSK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

GSK is part of the Zacks Medical - Biomedical and Genetics industry. Merus N.V. (MRUS - Free Report) , another stock in the same industry, closed the last trading session 1.4% lower at $23.44. MRUS has returned 3.8% in the past month.

For Merus N.V., the consensus EPS estimate for the upcoming report has changed -7.4% over the past month to -$0.75. This represents a change of -41.5% from what the company reported a year ago. Merus N.V. currently has a Zacks Rank of #3 (Hold).

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