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GlaxoSmithKline (GSK) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, GlaxoSmithKline (GSK - Free Report) closed at $40.83, marking a -1.23% move from the previous day. This change lagged the S&P 500's 0.43% loss on the day. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 0.62%.
Coming into today, shares of the drug developer had lost 6.6% in the past month. In that same time, the Medical sector lost 3.51%, while the S&P 500 lost 6.57%.
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 $0.73 per share. This would mark year-over-year growth of 15.87%. Meanwhile, our latest consensus estimate is calling for revenue of $12.28 billion, up 20.07% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.26 per share and revenue of $49.02 billion. These totals would mark changes of +4.82% and +4.54%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.91% lower within the past month. GlaxoSmithKline is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, GlaxoSmithKline currently has a Forward P/E ratio of 12.7. Its industry sports an average Forward P/E of 12.5, so we one might conclude that GlaxoSmithKline is trading at a premium comparatively.
It is also worth noting that GSK currently has a PEG ratio of 1.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GSK's industry had an average PEG ratio of 2.07 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 105, which puts it in the top 42% 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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GlaxoSmithKline (GSK) Dips More Than Broader Markets: What You Should Know
In the latest trading session, GlaxoSmithKline (GSK - Free Report) closed at $40.83, marking a -1.23% move from the previous day. This change lagged the S&P 500's 0.43% loss on the day. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 0.62%.
Coming into today, shares of the drug developer had lost 6.6% in the past month. In that same time, the Medical sector lost 3.51%, while the S&P 500 lost 6.57%.
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 $0.73 per share. This would mark year-over-year growth of 15.87%. Meanwhile, our latest consensus estimate is calling for revenue of $12.28 billion, up 20.07% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.26 per share and revenue of $49.02 billion. These totals would mark changes of +4.82% and +4.54%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.91% lower within the past month. GlaxoSmithKline is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, GlaxoSmithKline currently has a Forward P/E ratio of 12.7. Its industry sports an average Forward P/E of 12.5, so we one might conclude that GlaxoSmithKline is trading at a premium comparatively.
It is also worth noting that GSK currently has a PEG ratio of 1.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GSK's industry had an average PEG ratio of 2.07 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 105, which puts it in the top 42% 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.