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GlaxoSmithKline (GSK) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, GlaxoSmithKline (GSK) closed at $43.30, marking a -1.03% move from the previous day. This change lagged the S&P 500's 0.16% gain on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.

Heading into today, shares of the drug developer had gained 2.2% over the past month, outpacing the Medical sector's loss of 1.13% and the S&P 500's loss of 6.79% in that time.

GlaxoSmithKline will be looking to display strength as it nears its next earnings release. 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 $9.46 billion, down 16.31% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.16 per share and revenue of $43.12 billion. These totals would mark changes of +1.61% and -8.04%, respectively, from last year.

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Investors should also note any recent changes to analyst estimates for GlaxoSmithKline. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 0.45% 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 13.84. This valuation marks a premium compared to its industry's average Forward P/E of 13.23.

It is also worth noting that GSK currently has a PEG ratio of 1.96. 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 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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