Here's Why GSK (GSK) Gained But Lagged the Market Today
GSK (GSK) closed the most recent trading day at $42.99, moving +0.47% from the previous trading session. This move lagged the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 1.22%, while the tech-heavy Nasdaq added 0.51%.
Shares of the drug developer have appreciated by 0.97% over the course of the past month, outperforming the Medical sector's loss of 0.63% and lagging the S&P 500's gain of 2.84%.
Investors will be eagerly watching for the performance of GSK in its upcoming earnings disclosure. In that report, analysts expect GSK to post earnings of $0.95 per share. This would mark year-over-year growth of 5.56%. At the same time, our most recent consensus estimate is projecting a revenue of $8.99 billion, reflecting a 6.47% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.03 per share and a revenue of $39.85 billion, signifying shifts of +4.4% and +5.56%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for GSK. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.51% decrease. GSK is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that GSK has a Forward P/E ratio of 10.62 right now. This signifies a discount in comparison to the average Forward P/E of 23.53 for its industry.
We can also see that GSK currently has a PEG ratio of 1.96. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. GSK's industry had an average PEG ratio of 1.79 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
