Workflow
Here's Why GSK (GSK) is a Strong Momentum Stock
GSKGSK(US:GSK) ZACKSยท2025-04-30 14:55

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score capitalizes on existing price trends and earnings outlook [5] - VGM Score combines the strengths of Value, Growth, and Momentum Scores for a comprehensive evaluation [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +25.41% since 1988 [8] - A large number of stocks are rated, with over 800 top-rated options available, which can be overwhelming for investors [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [10] Company Spotlight: GSK - GSK operates in three segments: Specialty Medicines, Vaccines, and General Medicines, categorized as commercial operations [11] - GSK holds a 3 (Hold) rating on the Zacks Rank and has a VGM Score of A [11] - The company has a Momentum Style Score of A, with shares increasing by 2.9% over the past month [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate rising by $0.06 to $4.24 per share [12] - GSK's average earnings surprise stands at 11.4%, making it a notable candidate for investors [12]