GlaxoSmithKline (GSK) closed the most recent trading day at $39.26, moving -0.53% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.12%. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 1.07%.
Coming into today, shares of the drug developer had lost 2.76% in the past month. In that same time, the Medical sector lost 0.65%, while the S&P 500 lost 0.59%.
Investors will be hoping for strength from GSK as it approaches its next earnings release. On that day, GSK is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $11.30 billion, down 2.37% from the prior-year quarter.
GSK's full-year Zacks Consensus Estimates are calling for earnings of $3.01 per share and revenue of $44.60 billion. These results would represent year-over-year changes of -5.05% and +3.61%, respectively.
Any recent changes to analyst estimates for GSK should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.77% higher. GSK is currently a Zacks Rank #3 (Hold).
Looking at its valuation, GSK is holding a Forward P/E ratio of 13.12. For comparison, its industry has an average Forward P/E of 15.02, which means GSK is trading at a discount to the group.
We can also see that GSK currently has a PEG ratio of 2.9. 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 industry currently had an average PEG ratio of 2.08 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 116, which puts it in the top 46% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
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