Gilead Sciences (GILD) closed the most recent trading day at $62.34, moving -0.51% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 0.92%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Coming into today, shares of the HIV and hepatitis C drugmaker had gained 5.93% in the past month. In that same time, the Medical sector gained 3.13%, while the S&P 500 lost 1%.
Gilead Sciences will be looking to display strength as it nears its next earnings release. On that day, Gilead Sciences is projected to report earnings of $1.52 per share, which would represent a year-over-year decline of 18.72%. Our most recent consensus estimate is calling for quarterly revenue of $5.85 billion, down 5.85% from the year-ago period.
GILD’s full-year Zacks Consensus Estimates are calling for earnings of $6.59 per share and revenue of $24.64 billion. These results would represent year-over-year changes of -9.48% and -9.77%, respectively.
It is also important to note the recent changes to analyst estimates for Gilead Sciences. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Gilead Sciences is currently a Zacks Rank #3 (Hold).
Digging into valuation, Gilead Sciences currently has a Forward P/E ratio of 9.5. This represents a discount compared to its industry’s average Forward P/E of 22.48.
It is also worth noting that GILD currently has a PEG ratio of 0.63. 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 1.2 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 78, putting it in the top 31% 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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