Why GSK plc (GSK) Went Up on Wednesday

We recently compiled a list of the 10 Companies Jump on Better Earnings, Outlook. In this article, we are going to take a look at where GSK plc (NYSE:GSK) stands against the other stocks.

The stock market extended its winning streak on Wednesday, closing firmer as investors seemed to have already priced in the news of tit-for-tat tariffs and uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies traded in line with the broader market sentiment, mostly on the back of record achievements in their latest earnings performance and optimistic outlook guidance.

To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A doctor and a patient discussing a therapy plan that includes pharmaceutical products.

GSK plc (NYSE:GSK)

British pharmaceutical giant GSK plc (NYSE:GSK) saw its share prices on Wednesday rise by 8.21 percent to finish at $37.70 apiece as investor optimism was fueled by a more positive outlook for 2025 despite last year’s disappointing earnings performance.

In a statement, GSK said it expects a 2025 turnover growth between 3 to 5 percent, a core operating profit increase of 6 to 8 percent, and core EPS growth between 6 to 8 percent, including the benefit from a planned share buyback program.

It also raised its 2031 sales outlook to more than £40 billion ($50 billion) from the £38 billion ($47.5 billion) previously, reflecting late-stage pipeline progress.

Last year, GSK reported nearly halving its net profit after settling hefty US lawsuits over its Zantac heartburn drug. Net income after tax dropped to £2.6 billion ($3.3 billion) as compared with a net profit of £4.9 billion ($6.13 billion) in 2023.

Overall GSK ranks 10th on our list of Wednesday’s top gainers. While we acknowledge the potential of GSK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GSK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.