A look at GlaxoSmithKline
GlaxoSmithKline (GSK) segregates its business portfolio into three business segments—Pharmaceuticals, Vaccines, and Consumer Healthcare. As a British multinational company, GlaxoSmithKline reports its revenues in pounds sterling. The chart below compares GlaxoSmithKline’s EPS and revenues since the first quarter of 2017, as well as its estimates for the third quarter.
Stock performance and recommendations
GlaxoSmithKline ADR’s (GSK) price fell ~0.6% in the third quarter. On October 2, its stock price rose ~13.2% year-to-date.
Wall Street analysts expect GlaxoSmithKline stock to return ~7.3% over the next 12 months. Analysts’ recommendations show a 12-month target price of $43.06 per share, compared to its October 1 price of $40.05 per share.
Five analysts are currently tracking GlaxoSmithKline ADR. One analyst recommends a “strong buy,” and four analysts recommend a “hold.”
Also, 25 analysts are tracking GlaxoSmithKline stock on the London Stock Exchange. Three analysts recommend a “strong buy,” nine analysts recommend a “buy,” 12 analysts recommend a “hold,” and one analyst recommends a “sell.” The consensus rating for GlaxoSmithKline stands at 2.44, which represents a “strong buy” for value investors.
Analysts’ revenue estimates
GlaxoSmithKline’s (GSK) revenues are primarily driven by strong operational performance in its Pharmaceuticals, Vaccines, and Consumer Healthcare segments. Wall Street analysts expect GlaxoSmithKline to report EPS of 32.77 pence on revenues of 8.0 billion pounds sterling in the third quarter. This represents 2.2% revenue growth, compared to 7.8 billion pounds sterling during the third quarter of 2017.
The Invesco BLDRS Developed Markets 100 ADR ETF (ADRD) holds 2.4% of its total investments in GlaxoSmithKline (GSK), 5.4% in Novartis ADR (NVS), 2.5% in Sanofi ADR (SNY), and 0.5% in Teva Pharmaceuticals (TEVA).