Daily Stock Analysis: GSK Plc

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GSK plc bears the ticker symbol GSK. This is my first report on GSK plc for my Viking portfolio. However, I have selected it as a candidate for two of my previous seven Dog of the Week portfolios.

In the pharmaceutical industry, GSK ranks as one of the largest firms by total sales.

The company wields its might across several therapeutic classes, including respiratory, cancer, and antiviral, as well as vaccines.

GSK uses joint ventures to gain additional scale in certain markets like HIV.

The company was formerly known as GlaxoSmithKline plc and changed its name to GSK plc in May 2022.

GSK plc was founded in 1715 and is headquartered in Brentford, the United Kingdom.

Three key data points gauge

GSK plc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

GSK Price

GSK plc’s price per share was $32.54 at Monday’s market close. However, in the past year, GSK’s share price fell by $11.68 or about 26.4%.

If GSK’s stock trades in the range of $24.00 to $50.00 this next year, its recent $32.254 share price might reach $40.00 by next year. My upside increase estimate of $7.46 is $3.00 below the median of annual price targets for GSK calculated by three analysts.

GSK Dividends

GSK’s most recently declared quarterly dividend of $0.3171 per share equals $1.88 annually and casts a yield of 5.78%.

GSK Returns

Adding the $1.88 annual GSK dividend to my one-year price upside estimate of $7.46 shows a $9.34 potential gross gain per share.

At Monday’s $32.54 closing price, a little over $1000 would buy 31 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us about $0.32 per share.

Subtract that maybe $0.32 brokerage cost from my estimated $9.34 gross gain per share results in a net gain of $9.02 X 31 shares = $279.62 for a 27.9% net gain including a 5.78% annual dividend yield.

In a year our $1K investment in shares of GSK would generate $57.80 in cash dividends. Of course, a single share of GSK stock at Monday's $32.54 price is over $25.00 less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a likely time to buy GSK plc shares based on their dividends for the coming year 2022-23. The current dividend from the $1K invested is $25.26 greater than GSK’s single share price. Consider yourself alerted. Now might be the prime time to put GSK plc in your portfolio.

All of the estimates above are speculation based on the past history of GSK plc. Only time and money invested in this stock will determine its market value.

More By This Author:

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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