GSK (GSK) closed at $29.36 in the latest trading session, marking a -0.34% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.11%. Elsewhere, the Dow lost 1.54%, while the tech-heavy Nasdaq lost 0.3%.
Prior to today's trading, shares of the drug developer had lost 9.3% over the past month. This has lagged the Medical sector's loss of 4.04% and the S&P 500's loss of 8.19% in that time.
Investors will be hoping for strength from GSK as it approaches its next earnings release. In that report, analysts expect GSK to post earnings of $1.04 per share. This would mark a year-over-year decline of 17.46%. Our most recent consensus estimate is calling for quarterly revenue of $8.78 billion, down 29.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.23 per share and revenue of $34.49 billion. These totals would mark changes of -16.97% and -26.45%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 4.2% lower. GSK is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note GSK's current valuation metrics, including its Forward P/E ratio of 9.13. This represents a discount compared to its industry's average Forward P/E of 18.86.
It is also worth noting that GSK currently has a PEG ratio of 1.12. 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 Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research