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GSK Stock Up Almost 19% in 3 Months: Should You Buy, Hold or Sell?
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Key Takeaways
GSK's shares have climbed 18.6% on strong Q3 results and increased full-year sales and profit guidance.
Specialty Medicines sales are rising, driven by HIV, Respiratory and Oncology growth.
U.S. vaccine sales are declining, though GSK sees sales toward the high end of its 2025 guidance range.
GSK (GSK - Free Report) stock has risen 18.6% in the past three months. The price recovery was backed by strong third-quarter results, wherein the British drugmaker beat estimates for both earnings and sales. The company also raised its sales and profit guidance for the year, backed by improved expectations for its Specialty Medicines and Vaccines segment.
The drug and biotech sector has also recovered in the past three months, with large drugmakers like Pfizer and AstraZeneca (AZN - Free Report) signing drug pricing agreements with the Trump administration. PFE and AZN offered to cut prescription drug prices and boost domestic investments in exchange for a three-year exemption from tariffs on pharmaceutical imports.
Eli Lilly (LLY - Free Report) and Novo Nordisk (NVO - Free Report) also signed similar deals with President Trump to cut prices of their respective GLP-1 therapies for obesity, Zepbound and Wegovy, in exchange for Medicare access for the drugs and a three-year exemption from tariffs on pharmaceutical imports. A rebound in mergers and acquisitions (M&A) has also increased investor confidence in the industry.
Let's discuss GSK’s strengths and weaknesses in detail to better understand how to play the stock amid the recent price increase.
GSK Specialty Medicines Unit Driving Top-Line Growth
GSK is witnessing increased sales growth of its Specialty Medicines unit, particularly reflecting successful new launches in Oncology and long-acting HIV medicines. Sales of the Specialty Medicines unit rose 16% in the first nine months of 2025, driven by double-digit growth in all therapy areas — HIV, Respiratory, Immunology & Inflammation (RI&I), and Oncology.
In the segment, while key products like Nucala and Dovato are key top-line drivers, new long-acting HIV medicines, Cabenuva and Apretude, as well as new oncology drugs Jemperli and Ojjaara, are also witnessing strong patient demand and contributing to top-line growth.
GSK’s long-acting injectable medicines (Cabenuva, Apretude) are seeing strong demand trends. Around 25% of GSK’s total HIV sales come from new long-acting injectables for treatment and prevention.
On the third-quarter conference call, GSK raised its sales expectation for the segment. Sales of Specialty Medicines are now expected to increase at a mid-teens CER in 2025, higher than the previously expected low-teens growth. The guidance was increased due to continued strong momentum in HIV, RI&I and Oncology despite the impact from the Inflation Reduction Act or IRA. Specialty Medicines, which now accounts for around 40% of GSK’s sales, is expected to be more than 50% of GSK’s total revenues by 2031.
GSK’s Promising Pipeline
GSK is increasing R&D investment in promising new long-acting and specialty medicines in HIV, RI&I and Oncology areas.
Among some recent key drug approvals, Penmenvy, GSK’s pentavalent MenABCWY meningococcal vaccine and Blujepa/gepotidacin for treating uncomplicated urinary tract infection (“UTI”) were approved in the United States in 2025. Blenrep combinations were approved for relapsed or refractory multiple myeloma in the United States, the EU, the United Kingdom, Japan and some other countries in 2025. GSK expects Blenrep to be a key growth driver for the next 3-4 years. Its blockbuster drug Nucala was approved for treating chronic obstructive pulmonary disease or COPD, its fifth indication, in May 2025.
Regulatory applications seeking approval of Blujepa (gepotidacin) for urogenital gonorrhea and depemokimab for two indications (chronic rhinosinusitis with nasal polyps or CRSwNP and asthma with type II inflammation) are under review in the United States and some other countries. FDA decisions on these filings are expected this month. GSK also expects to file a global regulatory application for tebipenem pivoxil (complicated UTIs) soon.
GSK is also developing innovative ultra-long-acting HIV regimens for treatment and prevention (also called PrEP), which can extend the dosing intervals of the injections. GSK expects to launch twice-yearly long-acting injectables for treatment and PrEP between 2028 and 2030.
In 2025, GSK had set a target to launch five new products/line extensions, including Blenrep, depemokimab (severe asthma and CRSwNP), Nucala for COPD, Penmenvy and Blujepa. Of these, Penmenvy, Blujepa, Blenrep and Nucala for COPD are already approved in the United States with the FDA decision on the fifth, depemokimab, expected before year-end.
GSK’s Vaccine Sales Slowing Down in the United States
GSK’s Vaccine sales are declining in the United States due to lower sales of its shingles vaccine, Shingrix and RSV (Respiratory Syncytial Virus) vaccine, Arexvy. Total vaccine sales have declined 11% at CER in the United States so far in 2025.
U.S. sales of Shingrix are declining due to lower demand following a slowdown in immunization rates due to hard-to-reach patients. Arexvy’s sales in the United States are declining due to slower market uptake in the 60-plus population due to revised recommendations for RSV vaccinations issued by the US Advisory Committee on Immunization Practices (ACIP).
While sales of Arexvy and Shingrix rose in Europe, their sales declined 17% and 39%, respectively, in the United States in the first nine months of 2025. Influenza vaccine sales also declined in the United States in 2025 due to competitive pressure.
In 2025, the company expects sales in the Vaccines segment to decrease by a low single-digit percentage to remain broadly stable at CER. However, on the third-quarter conference call, the company said it expects sales to be toward the top end of the guidance range.
GSK’s Price Performance, Valuation & Estimate Movement
GSK stock has risen 43.1% year to date compared with an increase of 11.7% for the industry. The stock has also outperformed the sector and the S&P 500 index, as seen in the chart below. The stock has also been consistently trading above its 200 and 50-day moving averages since mid-August.
GSK Stock Outperforms Industry, Sector and S&P
Image Source: Zacks Investment Research
GSK’s stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 10.02 on a forward 12-month basis, lower than 16.31 for the industry. The stock, however, slightly trades above its 5-year mean of 9.94. The stock is much cheaper than several other large drugmakers like Eli Lilly, Novo Nordisk, AbbVie, J&J, AstraZeneca and others.
GSK Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings has risen from $4.38 to $4.49 per share for 2025, while that for 2026 has risen from $4.77 to $4.85 per share over the past 60 days.
GSK’s Estimates
Image Source: Zacks Investment Research
Stay Invested in GSK Stock
GSK has its share of problems. Competitive pressure on HIV and respiratory drugs has risen. The dolutegravir HIV franchise patent expires in the 2028-2029 period, and U.S. vaccine sales are slowing down. In 2025, GSK expects a negative sales impact of £400-500 million due to the impact of the IRA Medicare Part D redesign.
However, the company is consistently growing its sales and profits, mainly driven by its Specialty Medicines segment. GSK has some promising new products in Specialty Medicines. Sales are also improving in its General Medicines unit. The growth in Specialty Medicines and General Medicines is making up for softer performance in the United States in Vaccines.
For the five years till 2026, GSK expects to record more than 7% sales growth, while core operating profit is expected to increase more than 11% on a CAGR basis. By 2031, it expects sales to be more than £40 billion.
We suggest investors who own this Zacks Rank #3 (Hold) stock stay invested for now, considering the potential for steady sales and profit improvement in the coming years. Consistently rising estimates also reflect analysts’ optimism around profit growth. Buying the stock at its present attractive valuation can prove prudent for long-term investors who are interested in buying blue-chip companies.
Image: Bigstock
GSK Stock Up Almost 19% in 3 Months: Should You Buy, Hold or Sell?
Key Takeaways
GSK (GSK - Free Report) stock has risen 18.6% in the past three months. The price recovery was backed by strong third-quarter results, wherein the British drugmaker beat estimates for both earnings and sales. The company also raised its sales and profit guidance for the year, backed by improved expectations for its Specialty Medicines and Vaccines segment.
The drug and biotech sector has also recovered in the past three months, with large drugmakers like Pfizer and AstraZeneca (AZN - Free Report) signing drug pricing agreements with the Trump administration. PFE and AZN offered to cut prescription drug prices and boost domestic investments in exchange for a three-year exemption from tariffs on pharmaceutical imports.
Eli Lilly (LLY - Free Report) and Novo Nordisk (NVO - Free Report) also signed similar deals with President Trump to cut prices of their respective GLP-1 therapies for obesity, Zepbound and Wegovy, in exchange for Medicare access for the drugs and a three-year exemption from tariffs on pharmaceutical imports. A rebound in mergers and acquisitions (M&A) has also increased investor confidence in the industry.
Let's discuss GSK’s strengths and weaknesses in detail to better understand how to play the stock amid the recent price increase.
GSK Specialty Medicines Unit Driving Top-Line Growth
GSK is witnessing increased sales growth of its Specialty Medicines unit, particularly reflecting successful new launches in Oncology and long-acting HIV medicines. Sales of the Specialty Medicines unit rose 16% in the first nine months of 2025, driven by double-digit growth in all therapy areas — HIV, Respiratory, Immunology & Inflammation (RI&I), and Oncology.
In the segment, while key products like Nucala and Dovato are key top-line drivers, new long-acting HIV medicines, Cabenuva and Apretude, as well as new oncology drugs Jemperli and Ojjaara, are also witnessing strong patient demand and contributing to top-line growth.
GSK’s long-acting injectable medicines (Cabenuva, Apretude) are seeing strong demand trends. Around 25% of GSK’s total HIV sales come from new long-acting injectables for treatment and prevention.
On the third-quarter conference call, GSK raised its sales expectation for the segment. Sales of Specialty Medicines are now expected to increase at a mid-teens CER in 2025, higher than the previously expected low-teens growth. The guidance was increased due to continued strong momentum in HIV, RI&I and Oncology despite the impact from the Inflation Reduction Act or IRA. Specialty Medicines, which now accounts for around 40% of GSK’s sales, is expected to be more than 50% of GSK’s total revenues by 2031.
GSK’s Promising Pipeline
GSK is increasing R&D investment in promising new long-acting and specialty medicines in HIV, RI&I and Oncology areas.
Among some recent key drug approvals, Penmenvy, GSK’s pentavalent MenABCWY meningococcal vaccine and Blujepa/gepotidacin for treating uncomplicated urinary tract infection (“UTI”) were approved in the United States in 2025. Blenrep combinations were approved for relapsed or refractory multiple myeloma in the United States, the EU, the United Kingdom, Japan and some other countries in 2025. GSK expects Blenrep to be a key growth driver for the next 3-4 years. Its blockbuster drug Nucala was approved for treating chronic obstructive pulmonary disease or COPD, its fifth indication, in May 2025.
Regulatory applications seeking approval of Blujepa (gepotidacin) for urogenital gonorrhea and depemokimab for two indications (chronic rhinosinusitis with nasal polyps or CRSwNP and asthma with type II inflammation) are under review in the United States and some other countries. FDA decisions on these filings are expected this month. GSK also expects to file a global regulatory application for tebipenem pivoxil (complicated UTIs) soon.
GSK is also developing innovative ultra-long-acting HIV regimens for treatment and prevention (also called PrEP), which can extend the dosing intervals of the injections. GSK expects to launch twice-yearly long-acting injectables for treatment and PrEP between 2028 and 2030.
In 2025, GSK had set a target to launch five new products/line extensions, including Blenrep, depemokimab (severe asthma and CRSwNP), Nucala for COPD, Penmenvy and Blujepa. Of these, Penmenvy, Blujepa, Blenrep and Nucala for COPD are already approved in the United States with the FDA decision on the fifth, depemokimab, expected before year-end.
GSK’s Vaccine Sales Slowing Down in the United States
GSK’s Vaccine sales are declining in the United States due to lower sales of its shingles vaccine, Shingrix and RSV (Respiratory Syncytial Virus) vaccine, Arexvy. Total vaccine sales have declined 11% at CER in the United States so far in 2025.
U.S. sales of Shingrix are declining due to lower demand following a slowdown in immunization rates due to hard-to-reach patients. Arexvy’s sales in the United States are declining due to slower market uptake in the 60-plus population due to revised recommendations for RSV vaccinations issued by the US Advisory Committee on Immunization Practices (ACIP).
While sales of Arexvy and Shingrix rose in Europe, their sales declined 17% and 39%, respectively, in the United States in the first nine months of 2025. Influenza vaccine sales also declined in the United States in 2025 due to competitive pressure.
In 2025, the company expects sales in the Vaccines segment to decrease by a low single-digit percentage to remain broadly stable at CER. However, on the third-quarter conference call, the company said it expects sales to be toward the top end of the guidance range.
GSK’s Price Performance, Valuation & Estimate Movement
GSK stock has risen 43.1% year to date compared with an increase of 11.7% for the industry. The stock has also outperformed the sector and the S&P 500 index, as seen in the chart below. The stock has also been consistently trading above its 200 and 50-day moving averages since mid-August.
GSK Stock Outperforms Industry, Sector and S&P
GSK’s stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 10.02 on a forward 12-month basis, lower than 16.31 for the industry. The stock, however, slightly trades above its 5-year mean of 9.94. The stock is much cheaper than several other large drugmakers like Eli Lilly, Novo Nordisk, AbbVie, J&J, AstraZeneca and others.
GSK Stock Valuation
The Zacks Consensus Estimate for earnings has risen from $4.38 to $4.49 per share for 2025, while that for 2026 has risen from $4.77 to $4.85 per share over the past 60 days.
GSK’s Estimates
Stay Invested in GSK Stock
GSK has its share of problems. Competitive pressure on HIV and respiratory drugs has risen. The dolutegravir HIV franchise patent expires in the 2028-2029 period, and U.S. vaccine sales are slowing down. In 2025, GSK expects a negative sales impact of £400-500 million due to the impact of the IRA Medicare Part D redesign.
However, the company is consistently growing its sales and profits, mainly driven by its Specialty Medicines segment. GSK has some promising new products in Specialty Medicines. Sales are also improving in its General Medicines unit. The growth in Specialty Medicines and General Medicines is making up for softer performance in the United States in Vaccines.
For the five years till 2026, GSK expects to record more than 7% sales growth, while core operating profit is expected to increase more than 11% on a CAGR basis. By 2031, it expects sales to be more than £40 billion.
We suggest investors who own this Zacks Rank #3 (Hold) stock stay invested for now, considering the potential for steady sales and profit improvement in the coming years. Consistently rising estimates also reflect analysts’ optimism around profit growth. Buying the stock at its present attractive valuation can prove prudent for long-term investors who are interested in buying blue-chip companies.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.