Gsk Shares Are Undervalued

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Gsk Shares Are Undervalued

Gsk Shares Are Undervalued?

lot of investors are now thinking that the GSK shares look undervalued. But, is that the case or its all just an illusion?

Before we look at that, it's worth mentioning that GSK offers a dividend yield of 4%. On top of that, the trading price of GSK also makes it look like a bargain.

Gsk'S Revenue Jumped By 7%

GSK is involved in the manufacture of medicines & vaccines for different diseases and conditions. The data from last year shows that the revenue of GSK jumped by 7%.

The sales of speciality medicines also jumped by 19%. On top of that, the sales from the oncology products also jumped by 98%.

On the other hand, the revenue from vaccine sales declined by 4%. On top of that, the sales of Arexvy declined by 51%.

Meanwhile, GSK has increased its dividend yield to 5.2%, and the company is expected to increase it further in 2025. According to the experts, all of this shows that the GSK shares look cheap.

The GSK is also just trading at 8.9x of its annual forecast earnings. This is lower than the AstraZeneca, which makes it look a better choice.

This year, GSK is expecting its sales to jump by 3 - 5% while its core EPS is expected to jump by 6 - 8%.

The company also raised its sales outlook for 2031 to around 40 billion. Earlier, the sales outlook was only around 38 billion.

According to experts, GSK's earnings will likely grow quickly, leading to an increase in dividend payments.

However, it's worth noting that the USA has made some changes to policies for the healthcare sector. So, it could have a major impact on GSK.

Based on all of this, it is safe to say that it's not worth buying GSK shares at the current price. But if things get better for GSK in the near future, then it might become a good option in the pharma sector.

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