Yahoo Finance Why GSK (GSK) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
GSK (GSK)
GSK has three segments: Specialty Medicines (HIV, Oncology, Immunology/Respiratory and Other), Vaccines (Meningitis, Influenza, Shingles, RSV and Established Vaccines) and General Medicines (Respiratory and Other), which are clubbed as commercial operations.
GSK is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 10.1X for the current fiscal year compared to the Medical - Biomedical and Genetics industry's P/E of 24X. Additionally, GSK has a PEG Ratio of 1.3 and a Price/Cash Flow ratio of 8X. Value investors should also note GSK's Price/Sales ratio of 2.2X.
A company's earnings performance is important for value investors as well. For fiscal 2024, four analysts revised their earnings estimate higher in the last 60 days for GSK, while the Zacks Consensus Estimate has increased $0.07 to $4.10 per share. GSK also holds an average earnings surprise of 10.1%.
Investors should take the time to consider GSK for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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
