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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Zacks Equity Research
·2-min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

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.

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GSK (GSK)

GSK has three segments: Specialty Medicines (HIV, Oncology, Immunology/Respiratory and Other), Vaccines (Meningitis, Influenza, Shingles and Established Vaccines) and General Medicines (Respiratory and Other), which are clubbed as commercial operations.

GSK sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Medical - Biomedical and Genetics industry's P/E of 19.8X, shares of GSK are trading at a forward P/E of 9.3X. GSK also has a PEG Ratio of 1.7, a Price/Cash Flow ratio of 7.7X, and a Price/Sales ratio of 2X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.15 to $3.66 per share. GSK has an average earnings surprise of 12.5%.

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.

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To read this article on Zacks.com click here.

Zacks Investment Research