GSK (GSK) Rises Yet Lags Behind Market: Some Facts Worth Knowing

The latest trading session saw GSK (GSK) ending at $41.19, denoting a +0.81% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.24%.

Shares of the drug developer witnessed a loss of 6.24% over the previous month, trailing the performance of the Medical sector with its loss of 2.46% and the S&P 500's gain of 0.48%.

The investment community will be paying close attention to the earnings performance of GSK in its upcoming release. The company is slated to reveal its earnings on May 1, 2024. In that report, analysts expect GSK to post earnings of $0.95 per share. This would mark year-over-year growth of 5.56%. Simultaneously, our latest consensus estimate expects the revenue to be $8.99 billion, showing a 6.47% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.03 per share and a revenue of $39.85 billion, signifying shifts of +4.4% and +5.56%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GSK. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. GSK presently features a Zacks Rank of #3 (Hold).

With respect to valuation, GSK is currently being traded at a Forward P/E ratio of 10.14. This signifies a discount in comparison to the average Forward P/E of 23.56 for its industry.

We can additionally observe that GSK currently boasts a PEG ratio of 1.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.74 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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