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GlaxoSmithKline (GSK) Stock Moves -0.11%: What You Should Know

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GlaxoSmithKline (GSK) closed at $44.20 in the latest trading session, marking a -0.11% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.08%. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, added 0.22%.

Heading into today, shares of the drug developer had gained 1.91% over the past month, lagging the Medical sector's gain of 1.97% and outpacing the S&P 500's gain of 1.03% in that time.

Investors will be hoping for strength from GlaxoSmithKline as it approaches its next earnings release. In that report, analysts expect GlaxoSmithKline to post earnings of $0.68 per share. This would mark a year-over-year decline of 13.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.12 billion, down 1.72% from the year-ago period.

GSK's full-year Zacks Consensus Estimates are calling for earnings of $3.18 per share and revenue of $48.8 billion. These results would represent year-over-year changes of +2.25% and +4.08%, respectively.

Any recent changes to analyst estimates for GlaxoSmithKline should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 0.5% lower. GlaxoSmithKline currently has a Zacks Rank of #3 (Hold).

Digging into valuation, GlaxoSmithKline currently has a Forward P/E ratio of 13.93. This valuation marks a premium compared to its industry's average Forward P/E of 13.46.

Investors should also note that GSK has a PEG ratio of 1.97 right now. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.28 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% 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.


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