Is GlaxoSmithKline Stock a Buy?
GlaxoSmithKline (NYSE: GSK) hasn't been spared the market sell-off caused by the COVID-19 pandemic. Year to date, the company's shares are down by 19%, and the healthcare giant is currently hovering near a five-year low. Also, GlaxoSmithKline is trading at just 12.4 times future earnings, and the company's forward price-to-earnings-growth (PEG) ratio is only 0.5. Given these attractive valuation metrics, should investors consider buying shares of the London-based pharmaceutical company?
GlaxoSmithKline generates the bulk of its revenue from its biopharma business. However, this segment has not performed particularly well of late. During the fourth quarter, the company's pharmaceutical sales were 4.6 billion pounds, a 5% year-over-year decrease. This decrease was because several of GlaxoSmithKline's products lost steam; for instance, HIV drug Tivicay recorded quarterly sales of 426 million pounds, down 6% year-over-year, and another HIV drug, Triumeq, posted 638 million pounds in sales, down 8%.
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Source Fool.com
