GlaxoSmithKline (GSK - Free Report) closed the most recent trading day at $37.58, moving -0.84% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.06%. At the same time, the Dow lost 1.81%, and the tech-heavy Nasdaq lost 2.99%.
Prior to today's trading, shares of the drug developer had lost 6.44% over the past month. This has was narrower than the Medical sector's loss of 6.47% and the S&P 500's loss of 6.47% in that time.
Wall Street will be looking for positivity from GSK as it approaches its next earnings report date. This is expected to be February 6, 2019. In that report, analysts expect GSK to post earnings of $0.70 per share. This would mark a year-over-year decline of 2.78%. Our most recent consensus estimate is calling for quarterly revenue of $9.77 billion, down 3.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.96 per share and revenue of $38.70 billion, which would represent changes of +2.78% and -0.76%, 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.78% lower. GSK is currently a Zacks Rank #3 (Hold).
Looking at its valuation, GSK is holding a Forward P/E ratio of 12.81. Its industry sports an average Forward P/E of 13.97, so we one might conclude that GSK is trading at a discount comparatively.
We can also see that GSK currently has a PEG ratio of 1.82. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.