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Gilead Sciences (GILD) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 mins read

Gilead Sciences (GILD) closed the most recent trading day at $64.21, moving -1.29% from the previous trading session. This change lagged the S&P 500's daily loss of 1.16%. Elsewhere, the Dow lost 1.84%, while the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the HIV and hepatitis C drugmaker had lost 1.51% in the past month. In that same time, the Medical sector lost 0.29%, while the S&P 500 lost 1.96%.

Wall Street will be looking for positivity from GILD as it approaches its next earnings report date. On that day, GILD is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 8.57%. Meanwhile, our latest consensus estimate is calling for revenue of $6.38 billion, up 13.84% from the prior-year quarter.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $6.92 per share and revenue of $24.24 billion. These results would represent year-over-year changes of +4.37% and +7.97%, respectively.

Investors should also note any recent changes to analyst estimates for GILD. 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.

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. The Zacks Consensus EPS estimate has moved 0.62% lower within the past month. GILD is currently a Zacks Rank #3 (Hold).

Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 9.41. For comparison, its industry has an average Forward P/E of 25.01, which means GILD is trading at a discount to the group.

It is also worth noting that GILD currently has a PEG ratio of 0.73. 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 was holding an average PEG ratio of 1.52 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% 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.

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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