GSK (GSK) closed the most recent trading day at $31.85, moving +0.5% from the previous trading session. This change outpaced the S&P 500's 1.07% loss on the day. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the drug developer had lost 21.95% in the past month. In that same time, the Medical sector lost 4.02%, while the S&P 500 lost 3.49%.
Wall Street will be looking for positivity from GSK as it approaches its next earnings report date. The company is expected to report EPS of $1.20, down 4.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.78 billion, down 29.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.37 per share and revenue of $34.61 billion. These totals would mark changes of -13.37% and -26.2%, respectively, from last year.
Any recent changes to analyst estimates for GSK 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.
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 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. Within the past 30 days, our consensus EPS projection has moved 1.84% lower. GSK is currently a Zacks Rank #3 (Hold).
Investors should also note GSK's current valuation metrics, including its Forward P/E ratio of 9.4. For comparison, its industry has an average Forward P/E of 20.5, which means GSK is trading at a discount to the group.
Investors should also note that GSK has a PEG ratio of 1.16 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.36 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.
To follow GSK in the coming trading sessions, be sure to utilize Zacks.com.
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