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In the latest trading session, GlaxoSmithKline (GSK) closed at $43.35, marking a -0.8% move from the previous day. This change was narrower than the S&P 500's 2.01% loss on the day. Elsewhere, the Dow lost 1.56%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the drug developer had lost 0.82% over the past month, outpacing the Medical sector's loss of 2.07% and the S&P 500's loss of 6.08% in that time.
Wall Street will be looking for positivity from GlaxoSmithKline as it approaches its next earnings report date. On that day, GlaxoSmithKline is projected to report earnings of $0.67 per share, which would represent a year-over-year decline of 15.19%. Our most recent consensus estimate is calling for quarterly revenue of $7.8 billion, down 31.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.16 per share and revenue of $41.51 billion, which would represent changes of +1.61% and -11.47%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GlaxoSmithKline. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.63% lower. GlaxoSmithKline is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note GlaxoSmithKline's current valuation metrics, including its Forward P/E ratio of 13.82. Its industry sports an average Forward P/E of 13.37, so we one might conclude that GlaxoSmithKline is trading at a premium comparatively.
It is also worth noting that GSK currently has a PEG ratio of 1.95. 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 was holding an average PEG ratio of 2.1 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
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