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GlaxoSmithKline (GSK) Stock Sinks As Market Gains: What You Should Know
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GlaxoSmithKline (GSK - Free Report) closed at $43.28 in the latest trading session, marking a -0.05% move from the prior day. This change lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Heading into today, shares of the drug developer had gained 5.12% over the past month, lagging the Medical sector's gain of 6.27% and the S&P 500's gain of 5.51% in that time.
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, the Zacks Consensus Estimate for revenue is projecting net sales of $12.28 billion, up 20.07% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.26 per share and revenue of $49.02 billion, which would represent changes of +4.82% and +4.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GlaxoSmithKline. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.91% lower. GlaxoSmithKline is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GlaxoSmithKline has a Forward P/E ratio of 13.3 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.79.
It is also worth noting that GSK currently has a PEG ratio of 1.75. 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. GSK's industry had an average PEG ratio of 2.27 as of yesterday's close.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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GlaxoSmithKline (GSK) Stock Sinks As Market Gains: What You Should Know
GlaxoSmithKline (GSK - Free Report) closed at $43.28 in the latest trading session, marking a -0.05% move from the prior day. This change lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Heading into today, shares of the drug developer had gained 5.12% over the past month, lagging the Medical sector's gain of 6.27% and the S&P 500's gain of 5.51% in that time.
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, the Zacks Consensus Estimate for revenue is projecting net sales of $12.28 billion, up 20.07% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.26 per share and revenue of $49.02 billion, which would represent changes of +4.82% and +4.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GlaxoSmithKline. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.91% lower. GlaxoSmithKline is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GlaxoSmithKline has a Forward P/E ratio of 13.3 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.79.
It is also worth noting that GSK currently has a PEG ratio of 1.75. 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. GSK's industry had an average PEG ratio of 2.27 as of yesterday's close.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.