Gilead Sciences (GILD) closed the most recent trading day at $60.74, moving -0.72% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 2.91%. Meanwhile, the Dow lost 2.73%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Heading into today, shares of the HIV and hepatitis C drugmaker had lost 2.08% over the past month, lagging the Medical sector’s gain of 2.04% and the S&P 500’s gain of 0.84% in that time.
Investors will be hoping for strength from Gilead Sciences as it approaches its next earnings release. The company is expected to report EPS of $1.52, down 18.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.85 billion, down 5.85% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.59 per share and revenue of $24.64 billion. These totals would mark changes of -9.48% and -9.77%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% lower. Gilead Sciences is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Gilead Sciences’s current valuation metrics, including its Forward P/E ratio of 9.28. This represents a discount compared to its industry’s average Forward P/E of 20.81.
It is also worth noting that GILD currently has a PEG ratio of 0.62. 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. Medical – Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.1 based on yesterday’s closing prices.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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