Gilead Sciences (GILD) closed at $88.40 in the latest trading session, marking a -0.39% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.61%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.17%.
Prior to today’s trading, shares of the HIV and hepatitis C drugmaker had gained 6.93% over the past month. This has outpaced the Medical sector’s gain of 5.48% and the S&P 500’s gain of 0.89% in that time.
Gilead Sciences will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.50, up 117.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.57 billion, down 9.29% from the prior-year quarter.
GILD’s full-year Zacks Consensus Estimates are calling for earnings of $7.09 per share and revenue of $26.46 billion. These results would represent year-over-year changes of -2.61% and -3.08%, respectively.
Investors might also notice recent changes to analyst estimates for Gilead Sciences. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Gilead Sciences is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Gilead Sciences is currently trading at a Forward P/E ratio of 12.51. This represents a discount compared to its industry’s average Forward P/E of 17.8.
Meanwhile, GILD’s PEG ratio is currently 0.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Medical – Biomedical and Genetics industry currently had an average PEG ratio of 1.36 as of yesterday’s close.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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