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GSK (GSK) Gains But Lags Market: What You Should Know
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GSK (GSK - Free Report) closed the most recent trading day at $32.24, moving +1.51% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.63%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 0.3%.
Prior to today's trading, shares of the drug developer had gained 10.2% over the past month. This has outpaced the Medical sector's gain of 3.34% and the S&P 500's gain of 2.94% in that time.
Wall Street will be looking for positivity from GSK as it approaches its next earnings report date. This is expected to be November 2, 2022. On that day, GSK is projected to report earnings of $0.91 per share, which would represent a year-over-year decline of 27.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.75 billion, down 38.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.05 per share and revenue of $34.05 billion, which would represent changes of -21.59% and -27.39%, respectively, from the prior year.
Any recent changes to analyst estimates for GSK should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 2.74% lower. GSK currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GSK has a Forward P/E ratio of 10.41 right now. Its industry sports an average Forward P/E of 19.73, so we one might conclude that GSK is trading at a discount comparatively.
Also, we should mention that GSK has a PEG ratio of 1.28. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% 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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GSK (GSK) Gains But Lags Market: What You Should Know
GSK (GSK - Free Report) closed the most recent trading day at $32.24, moving +1.51% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.63%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 0.3%.
Prior to today's trading, shares of the drug developer had gained 10.2% over the past month. This has outpaced the Medical sector's gain of 3.34% and the S&P 500's gain of 2.94% in that time.
Wall Street will be looking for positivity from GSK as it approaches its next earnings report date. This is expected to be November 2, 2022. On that day, GSK is projected to report earnings of $0.91 per share, which would represent a year-over-year decline of 27.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.75 billion, down 38.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.05 per share and revenue of $34.05 billion, which would represent changes of -21.59% and -27.39%, respectively, from the prior year.
Any recent changes to analyst estimates for GSK should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 2.74% lower. GSK currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GSK has a Forward P/E ratio of 10.41 right now. Its industry sports an average Forward P/E of 19.73, so we one might conclude that GSK is trading at a discount comparatively.
Also, we should mention that GSK has a PEG ratio of 1.28. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% 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.