Gilead Sciences (GILD) closed the most recent trading day at $65.23, moving +1.94% from the previous trading session. This move outpaced the S&P 500’s daily gain of 1.66%. Meanwhile, the Dow gained 1.39%, and the Nasdaq, a tech-heavy index, added 1.24%.
Prior to today’s trading, shares of the HIV and hepatitis C drugmaker had gained 1.91% over the past month. This has outpaced the Medical sector’s loss of 1.26% and traded in line with the S&P 500.
GILD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.97, up 17.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.71 billion, up 20.87% from the year-ago period.
GILD’s full-year Zacks Consensus Estimates are calling for earnings of $7.21 per share and revenue of $24.87 billion. These results would represent year-over-year changes of +1.69% and +0.74%, respectively.
Investors might also notice recent changes to analyst estimates for GILD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GILD is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that GILD has a Forward P/E ratio of 8.88 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 23.67.
Also, we should mention that GILD has a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. GILD’s industry had an average PEG ratio of 1.53 as of yesterday’s close.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GILD in the coming trading sessions, be sure to utilize Zacks.com.
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