Yahoo Finance Why the Market Dipped But GSK (GSK) Gained Today
GSK (GSK) closed the most recent trading day at $39.75, moving +1.22% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.88%. Elsewhere, the Dow saw an upswing of 0.56%, while the tech-heavy Nasdaq depreciated by 2.05%.
Heading into today, shares of the drug developer had lost 7.32% over the past month, lagging the Medical sector's loss of 6.4% and the S&P 500's loss of 2.57% in that time.
The investment community will be closely monitoring the performance of GSK in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2024. On that day, GSK is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 4.44%. Our most recent consensus estimate is calling for quarterly revenue of $8.98 billion, up 6.33% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.03 per share and revenue of $39.69 billion, indicating changes of +4.4% and +5.16%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for GSK. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.83% lower within the past month. At present, GSK boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, GSK is currently exchanging hands at a Forward P/E ratio of 9.74. Its industry sports an average Forward P/E of 22.02, so one might conclude that GSK is trading at a discount comparatively.
One should further note that GSK currently holds a PEG ratio of 1.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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