Gilead Sciences (GILD) closed the most recent trading day at $57.72, moving -1.15% from the previous trading session. This change was narrower than the S&P 500’s 3.25% loss on the day. Elsewhere, the Dow lost 2.42%, while the tech-heavy Nasdaq lost 0.49%.
Heading into today, shares of the HIV and hepatitis C drugmaker had lost 7.64% over the past month, lagging the Medical sector’s loss of 1.96% and the S&P 500’s loss of 5.62% in that time.
Gilead Sciences will be looking to display strength as it nears its next earnings release. In that report, analysts expect Gilead Sciences to post earnings of $1.52 per share. This would mark 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.
Investors should also note any recent changes to analyst estimates for Gilead Sciences. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.05% 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 8.86. This valuation marks a discount compared to its industry’s average Forward P/E of 20.16.
Meanwhile, GILD’s PEG ratio is currently 0.59. 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. The Medical – Biomedical and Genetics industry currently had an average PEG ratio of 1.07 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 105, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Special Report: The Top 5 IPOs for Your Portfolio
Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards – and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
