GlaxoSmithKline Stock Has Increased ~15% in 2018



Stock performance

On November 19, GlaxoSmithKline’s (GSK) stock price closed at $40.83, which represents ~1.21% growth from its close of $40.34 on November 16. GlaxoSmithKline’s stock price grew from $35.47 when the market closed on December 29, 2017, to $40.83 November 19, which reflects ~15% year-to-date growth.

On November 19, GlaxoSmithKline’s stock price closed at $40.83, which represents ~185 growth from its 52-week low of $34.52 on December 6, 2017. On June 14, GlaxoSmithKline hit its 52-week high of $42.36.

Article continues below advertisement


GlaxoSmithKline reported revenues of $10.5 billion in the third quarter, which reflects ~2.78% YoY (year-over-year) growth. Analysts expect GlaxoSmithKline’s net revenues in 2018 to be ~39.6 billion, which represents ~1.92% YoY growth. GlaxoSmithKline’s revenue growth could boost the Pharmaceutical ETF’s (PPH) share prices. Notably, GlaxoSmithKline accounts for ~5.29% of PPH’s total portfolio holdings.

GlaxoSmithKline’s Vaccines segment mainly contributed to its revenue growth during the first nine months of 2018. GlaxoSmithKline’s vaccines business reported net revenues of 4.4 billion British pounds during the first nine months of 2018, which reflects ~12% YoY growth.

GlaxoSmithKline’s HIV segment and respiratory products Nucala and Ellipta mainly pushed the revenues in the company’s Pharmaceutical segment. GlaxoSmithKline’s Immune-Inflammation segment also significantly boosted the revenue growth in the third quarter and witnessed ~28% YoY growth. Benlysta pushed the Immune-Inflammation segment’s revenues.

Notably, GlaxoSmithKline’s net EPS during the first nine months of 2018 was 49.0 pence, which reflects ~15% YoY growth.

Analysts’ recommendations

Among the four analysts tracking GlaxoSmithKline in November, one recommended a “strong buy,” while three recommended a “hold.” On November 20, GlaxoSmithKline had a consensus 12-month target price of $44.31, which represents an ~8.52% return on investment over the next 12 months.


More From Market Realist