In the latest trading session, GlaxoSmithKline (GSK) closed at $43.30, marking a +0.91% move from the previous day. This move lagged the S&P 500's daily gain of 1.43%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq added 0.32%.
Heading into today, shares of the drug developer had lost 0.49% over the past month, lagging the Medical sector's gain of 5.94% and the S&P 500's gain of 5.65% in that time.
Wall Street will be looking for positivity from GlaxoSmithKline as it approaches its next earnings report date. The company is expected to report EPS of $0.73, up 15.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.28 billion, up 20.07% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.26 per share and revenue of $49.02 billion, which would represent changes of +4.82% and +4.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GlaxoSmithKline. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.39% lower within the past month. GlaxoSmithKline currently has a Zacks Rank of #3 (Hold).
Digging into valuation, GlaxoSmithKline currently has a Forward P/E ratio of 13.18. Its industry sports an average Forward P/E of 12.78, so we one might conclude that GlaxoSmithKline is trading at a premium comparatively.
Meanwhile, GSK's PEG ratio is currently 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow GSK in the coming trading sessions, be sure to utilize Zacks.com.
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GlaxoSmithKline plc (GSK): Free Stock Analysis Report
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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.
