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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 $42.63, moving +0.31% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, added 1.11%.
Prior to today's trading, shares of the drug developer had gained 14.09% over the past month. This has lagged the Medical sector's gain of 22.72% and the S&P 500's gain of 16.09% in that time.
Wall Street will be looking for positivity from GSK as it approaches its next earnings report date. In that report, analysts expect GSK to post earnings of $0.79 per share. This would mark no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $10.95 billion, up 9.73% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.89 per share and revenue of $44.08 billion, which would represent changes of -8.83% and +2.4%, respectively, from the prior year.
Any recent changes to analyst estimates for GSK should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 2.36% lower. GSK is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that GSK has a Forward P/E ratio of 14.71 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.71.
Also, we should mention that GSK has a PEG ratio of 8.15. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 $42.63, moving +0.31% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, added 1.11%.
Prior to today's trading, shares of the drug developer had gained 14.09% over the past month. This has lagged the Medical sector's gain of 22.72% and the S&P 500's gain of 16.09% in that time.
Wall Street will be looking for positivity from GSK as it approaches its next earnings report date. In that report, analysts expect GSK to post earnings of $0.79 per share. This would mark no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $10.95 billion, up 9.73% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.89 per share and revenue of $44.08 billion, which would represent changes of -8.83% and +2.4%, respectively, from the prior year.
Any recent changes to analyst estimates for GSK should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 2.36% lower. GSK is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that GSK has a Forward P/E ratio of 14.71 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.71.
Also, we should mention that GSK has a PEG ratio of 8.15. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.