Yahoo Finance Here's Why GSK (GSK) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
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 9.5X for the current fiscal year compared to the Medical - Biomedical and Genetics industry's P/E of 21.5X. Additionally, GSK has a PEG Ratio of 1.2 and a Price/Cash Flow ratio of 7.5X. Value investors should also note GSK's Price/Sales ratio of 2.1X.
Many value investors pay close attention to a company's earnings as well. For GSK, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $4.10 per share for 2024. Per share GSK boasts an average earnings surprise of 10.1%.
GSK should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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