Market Overview - Wall Street has experienced volatility in 2025 due to overstretched valuations of U.S. stocks, persistent inflation, weak economic data, geopolitical conflicts, and concerns regarding the Trump administration's trade policies [1] - The Federal Reserve's uncertainty over rate cuts, recession fears, and the emergence of a low-cost Chinese AI platform have contributed to investor unease [1] Investment Strategy - It is advisable to invest in high dividend-paying corporate giants, which typically possess strong financial positions, robust business models, and globally recognized brand value [2] - Regular dividend payments from these firms can provide a steady income stream during market fluctuations [2] Company Highlights Philip Morris International Inc. (PM) - Zacks Rank 1, benefiting from strong pricing power and an expanding smoke-free product portfolio, aiming to become substantially smoke-free by 2030 [6][7] - Expected revenue and earnings growth rates of 8.1% and 13.7% respectively for the current year, with a current dividend yield of 3.01% [8] CVS Health Corp. (CVS) - Zacks Rank 2, investing in technology to reduce costs and enhance customer experience, with plans to close 271 stores to save over $500 million in 2025 [9][10] - Expected revenue and earnings growth rates of 3.7% and 12.6% respectively for the current year, with a current dividend yield of 4.34% [10] Energy Transfer LP (ET) - Zacks Rank 2, benefiting from long-term fee-based contracts, with nearly 90% of earnings from such contracts [11][13] - Expected revenue and earnings growth rates of 18.2% and 12.5% respectively for the current year, with a current dividend yield of 7.30% [13] GSK plc (GSK) - Zacks Rank 2, strong position in HIV and Vaccines, with increased sales growth in Specialty Medicines and promising new products [14][15] - Expected revenue and earnings growth rates of 5.1% and 6.7% respectively for the current year, with a current dividend yield of 4.28% [16] NatWest Group plc (NWG) - Zacks Rank 1, providing a range of banking and financial services in the UK and internationally [17][18] - Expected revenue and earnings growth rates of 20.1% and 17.3% respectively for the current year, with a current dividend yield of 5.41% [19]

Core Viewpoint - GSK plc is expected to exceed earnings expectations in the first quarter of 2025, with a consensus estimate for sales at $9.54 billion and earnings at $1.08 per American depositary share (ADS) [1] Factors Shaping GSK's Upcoming Results - GSK's financial performance is segmented into Specialty Medicines, Vaccines, and General Medicines [1] - Newer products such as Cabenuva, Juluca, Dovato, Nucala, Ojjaara, Jemperli, and Trelegy Ellipta are anticipated to drive sales, compensating for declines in older HIV drugs and respiratory medicines due to generic competition [2] - The HIV portfolio is projected to generate sales of £1.71 billion, driven by strong growth in two-drug regimens Dovato and Juluca, as well as long-acting regimens Cabenuva and Apretude [3] - Vaccine sales are expected to decline, with projections of £2.2 billion, influenced by lower demand for Shingrix and restrictive recommendations for Arexvy [4][5] - Oncology sales are likely to grow, with expectations of £380 million from Jemperli, Zejula, and Ojjaara, alongside respiratory drugs Trelegy Ellipta and Nucala contributing £677 million and £403 million, respectively [6] GSK's Earnings Surprise History - GSK has consistently surpassed earnings estimates in the past four quarters, achieving an average surprise of 11.44% [7] - Year-to-date, GSK's shares have increased by 11%, outperforming the industry, which has seen a 5% decline [7] Earnings Prediction Model - GSK has a positive Earnings ESP of +3.16% and a Zacks Rank of 3, indicating a strong likelihood of an earnings beat [9]

Core Insights - GSK's shares have increased by approximately 8% since the last earnings report, outperforming the S&P 500 [1] - The company reported core earnings of 59 cents per American depositary share (ADS), exceeding the Zacks Consensus Estimate of 53 cents, although core earnings declined by 20% year-over-year [2] - Quarterly revenues rose by 1% to $10.4 billion (£8.12 billion), surpassing the Zacks Consensus Estimate of $10.00 billion [2] Segment Performance - Specialty Medicines segment saw a 17% increase in sales, driven by strong growth in HIV, Immunology/Respiratory, and Oncology [5] - General Medicines sales increased by 6%, supported by strong demand for the asthma inhaler Trelegy Ellipta [14] - Vaccine sales declined by 12%, primarily due to lower sales of the RSV vaccine Arexvy and shingles vaccine Shingrix [16] Specialty Medicines Details - HIV sales rose by 14%, with significant contributions from the dolutegravir franchise, which saw an 8% increase in sales [5][6] - New long-acting medicines Cabenuva and Apretude experienced sales growth of 43% and 65%, respectively, contributing over 50% to total HIV growth [7] - Oncology sales surged by 72%, driven by strong demand for Jemperli and Ojjaara [8] General Medicines Insights - Trelegy Ellipta sales surged by 17%, while sales of established drugs like Advair/Seretide declined by 2% [14] - General Medicines sales are expected to remain stable in 2025, with volume growth offset by pricing pressures [15] Vaccine Performance - Arexvy sales fell by 69% year-over-year, while Shingrix sales decreased by 4% due to lower demand [16][17] - Meningitis vaccine Bexsero sales rose by 39%, while Menveo sales declined by 41% [19] Financial Outlook - GSK expects sales growth of 3-5% in 2025, with Specialty Medicines driving this growth [21] - The company plans to buy back up to £2 billion of shares over the next 18 months [22] - A dividend of 64p is planned for 2025, reflecting a 5% increase year-over-year [23] Long-Term Guidance - GSK raised its long-term sales outlook for 2031 to over £40 billion, up from a previous estimate of over £38 billion [24] - Specialty Medicines are expected to account for more than 50% of sales by 2031 [24] - The company maintained its guidance for 2021-2026, expecting sales growth of more than 7% and core operating profit growth of more than 11% on a CAGR basis [25]