GlaxoSmithKline (GSK) Stock Moves -0.74%: What You Should Know
In the latest trading session, GlaxoSmithKline (GSK) closed at $41.64, marking a -0.74% move from the previous day. This move was narrower than the S&P 500's daily loss of 3.25%. Elsewhere, the Dow lost 2.42%, while the tech-heavy Nasdaq lost 0.48%.
Coming into today, shares of the drug developer had lost 3.85% in the past month. In that same time, the Medical sector lost 1.96%, while the S&P 500 lost 5.62%.
GlaxoSmithKline will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.68, down 13.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.12 billion, down 1.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $48.8 billion. These totals would mark changes of +2.25% and +4.08%, respectively, from last year.
Any recent changes to analyst estimates for GlaxoSmithKline should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.5% lower within the past month. GlaxoSmithKline currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GlaxoSmithKline has a Forward P/E ratio of 13.21 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.54.
It is also worth noting that GSK currently has a PEG ratio of 1.87. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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