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GlaxoSmithKline (GSK) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, GlaxoSmithKline (GSK - Free Report) closed at $45.25, marking a -1.07% move from the previous day. This change lagged the S&P 500's daily gain of 2.44%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.

Coming into today, shares of the drug developer had gained 3.67% in the past month. In that same time, the Medical sector lost 12.92%, while the S&P 500 lost 9.65%.

GlaxoSmithKline will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2022. In that report, analysts expect GlaxoSmithKline to post earnings of $0.63 per share. This would mark year-over-year growth of 1.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.62 billion, up 9.36% from the year-ago period.

Investors might also notice recent changes to analyst estimates for GlaxoSmithKline. Recent revisions tend to reflect the latest near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 1.1% higher. GlaxoSmithKline is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that GlaxoSmithKline has a Forward P/E ratio of 13.93 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.9.

Meanwhile, GSK's PEG ratio is currently 2.49. 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 Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.97 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 31% 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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