We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GSK (GSK) Surpasses Market Returns: Some Facts Worth Knowing
Read MoreHide Full Article
In the latest trading session, GSK (GSK - Free Report) closed at $37.10, marking a +1.23% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.63% for the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.39%.
Prior to today's trading, shares of the drug developer had gained 0.27% over the past month. This has outpaced the Medical sector's loss of 1.62% and the S&P 500's loss of 3.39% in that time.
Analysts and investors alike will be keeping a close eye on the performance of GSK in its upcoming earnings disclosure. The company is expected to report EPS of $1.05, down 3.67% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.63 billion, indicating a 4.42% growth compared to the corresponding quarter of the prior year.
GSK's full-year Zacks Consensus Estimates are calling for earnings of $3.77 per share and revenue of $37.08 billion. These results would represent year-over-year changes of +8.96% and -6.63%, respectively.
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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.51% downward. GSK is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, GSK is currently being traded at a Forward P/E ratio of 9.73. For comparison, its industry has an average Forward P/E of 17.38, which means GSK is trading at a discount to the group.
We can also see that GSK currently has a PEG ratio of 1.94. 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. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 2.13.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 33% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GSK (GSK) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, GSK (GSK - Free Report) closed at $37.10, marking a +1.23% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.63% for the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.39%.
Prior to today's trading, shares of the drug developer had gained 0.27% over the past month. This has outpaced the Medical sector's loss of 1.62% and the S&P 500's loss of 3.39% in that time.
Analysts and investors alike will be keeping a close eye on the performance of GSK in its upcoming earnings disclosure. The company is expected to report EPS of $1.05, down 3.67% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.63 billion, indicating a 4.42% growth compared to the corresponding quarter of the prior year.
GSK's full-year Zacks Consensus Estimates are calling for earnings of $3.77 per share and revenue of $37.08 billion. These results would represent year-over-year changes of +8.96% and -6.63%, respectively.
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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.51% downward. GSK is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, GSK is currently being traded at a Forward P/E ratio of 9.73. For comparison, its industry has an average Forward P/E of 17.38, which means GSK is trading at a discount to the group.
We can also see that GSK currently has a PEG ratio of 1.94. 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. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 2.13.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 33% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.