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GlaxoSmithKline (GSK) Gains But Lags Market: What You Should Know
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GlaxoSmithKline (GSK - Free Report) closed the most recent trading day at $43.39, moving +0.81% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.84%. Meanwhile, the Dow gained 1.33%, and the Nasdaq, a tech-heavy index, added 0.74%.
Heading into today, shares of the drug developer had lost 4.69% over the past month, lagging the Medical sector's loss of 1.18% and the S&P 500's loss of 0.5% in that time.
GlaxoSmithKline will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.68, down 13.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.12 billion, down 1.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.21 per share and revenue of $48.8 billion. These totals would mark changes of +3.22% and +4.08%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for GlaxoSmithKline. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 1.06% higher. GlaxoSmithKline currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, GlaxoSmithKline is holding a Forward P/E ratio of 13.42. For comparison, its industry has an average Forward P/E of 13.15, which means GlaxoSmithKline is trading at a premium to the group.
Investors should also note that GSK has a PEG ratio of 1.9 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. GSK's industry had an average PEG ratio of 2.24 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 94, which puts it in the top 38% 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.
To follow GSK in the coming trading sessions, be sure to utilize Zacks.com.
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GlaxoSmithKline (GSK) Gains But Lags Market: What You Should Know
GlaxoSmithKline (GSK - Free Report) closed the most recent trading day at $43.39, moving +0.81% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.84%. Meanwhile, the Dow gained 1.33%, and the Nasdaq, a tech-heavy index, added 0.74%.
Heading into today, shares of the drug developer had lost 4.69% over the past month, lagging the Medical sector's loss of 1.18% and the S&P 500's loss of 0.5% in that time.
GlaxoSmithKline will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.68, down 13.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.12 billion, down 1.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.21 per share and revenue of $48.8 billion. These totals would mark changes of +3.22% and +4.08%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for GlaxoSmithKline. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 1.06% higher. GlaxoSmithKline currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, GlaxoSmithKline is holding a Forward P/E ratio of 13.42. For comparison, its industry has an average Forward P/E of 13.15, which means GlaxoSmithKline is trading at a premium to the group.
Investors should also note that GSK has a PEG ratio of 1.9 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. GSK's industry had an average PEG ratio of 2.24 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 94, which puts it in the top 38% 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.
To follow GSK in the coming trading sessions, be sure to utilize Zacks.com.