GlaxoSmithKline has racked up a series of recent HIV treatment wins and, on Monday, GSK stock flirted with a breakout.
Last month, Glaxo's ViiV Healthcare won Food and Drug Administration approval for a once-daily pill to treat children with HIV. The FDA also approved a new process for beginning treatment with Cabenuva, an injected HIV treatment for people age 12 and older.
On today's stock market, GSK stock dipped a fraction to 46.48. Earlier, shares briefly topped a buy point at 46.95 out of a cup base, according to MarketSmith.com. But the move occurred in low volume.
GSK Stock: Growth Expected
Shares began forming a cup base in mid-January. Savvy investors could look for an entry between 46.95-49.30, following the 5% chase rule.
Investors also could be looking for more news before sending GSK stock up more bullishly.
The pharmaceutical giant is expected to report adjusted profit of 38 cents a share on $11.61 billion in first-quarter sales. Neither metric could line up with CAN SLIM advice for growth stocks, which looks for companies with recent earnings and sales growth of 20%-25%. Glaxo's profit would rise close to 19% as sales would advanced nearly 13%.
Covid, RSV Efforts Underway
GSK stock investors also might be looking for an update from Glaxo and its Covid antibody partner, Vir Biotechnology. Earlier this month, the FDA suspended use of their drug, sotrovimab, as the omicron B.A. 2 variant became dominant in the country.
The variant is more elusive for antibodies used in the U.S. But Glaxo and Vir say they're far from done with sotrovimab. They're now preparing to ask the FDA to allow a larger dose of the antibody to treat Covid patients.
Meanwhile, GlaxoSmithKline continues working on another respiratory virus: respiratory syncytial virus, or RSV. In February, the company stopped enrolling pregnant patients in a vaccine study. A study in adults age 60 and older is ongoing.
Highly Rated Medical Stock
GSK stock now has an IBD Composite Rating of 91 out of a best-possible 99. This puts shares in the top 9% of all stocks in terms of fundamental and technical measures, according to IBD Digital.
Shares also have a strong Relative Strength Rating of 90, reflecting their bullish performance over the past 12 months. On a year-to-date basis, GSK stock has climbed roughly 5%. Meanwhile, the Medical-Diversified industry group, where Glaxo shares trade, has fallen 2%.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
