GSK PLC (GSK) is a Zacks Rank #5 (Strong Sell) after the company beat the Zacks Consensus Estimate when the last reported. The company is in the healthcare space and there has been a lot of press around changes that the new Trump Administration will be brining.. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day. DescriptionGSK Plc is a healthcare company, which engages in the research, development, and manufacture of pharmaceutical medicines, vaccines, and consumer healthcare products. It operates through the Commercial Operations, and Research and Development segments. The Commercial Operations segment has three product groups of specialty medicines, vaccines, and general medicines. The company was founded in 1715 and is headquartered in Middlesex, the United Kingdom. Earnings HistoryWhen I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.In the case of Ashland Inc (ASH), I see three beats and one miss of the Zacks Consensus Estimate over the last year. The most recent quarter was a miss with the company posting $1.26 when the consensus was calling for $1.33. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates. Earnings EstimatesThe Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For HII I see annual estimates moving lower of late.The current fiscal year consensus number moved lower from $4.77 to $4.33 over the last 60 days. The next year has moved from $5.74 to $5.31 over the last 60 days.Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).More By This Author:Buy Amazon Ahead of Earnings Today on Strong EPS Estimate RevisionsBuy The Pullback In Alphabet Stock After Q4 Earnings? Qualcomm Q1 Earnings And Revenues Surpass Estimates
