GlaxoSmithKline (GSK) closed at $41.10 in the latest trading session, marking a +0.37% move from the prior day. This change outpaced the S&P 500's 0.57% loss on the day. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.03%.
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 $0.60 per share. This would mark a year-over-year decline of 23.08%. Meanwhile, our latest consensus estimate is calling for revenue of $10.13 billion, up 0.94% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.90 per share and revenue of $43.85 billion. These totals would mark changes of -8.52% and +1.86%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for GSK. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.8% lower. GSK is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that GSK has a Forward P/E ratio of 14.12 right now. This represents a discount compared to its industry's average Forward P/E of 15.21.
We can also see that GSK currently has a PEG ratio of 5.1. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.1 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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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