Gilead Sciences (GILD) closed the most recent trading day at $63.82, moving -1.74% from the previous trading session. This change lagged the S&P 500's 1.07% loss on the day. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the HIV and hepatitis C drugmaker had gained 4.91% in the past month. In that same time, the Medical sector lost 4.02%, while the S&P 500 lost 3.49%.
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 42.64%. Meanwhile, our latest consensus estimate is calling for revenue of $6.09 billion, down 17.93% from the prior-year quarter.
GILD's full-year Zacks Consensus Estimates are calling for earnings of $6.63 per share and revenue of $25.27 billion. These results would represent year-over-year changes of -8.93% and -7.47%, respectively.
Investors should also note any recent changes to analyst estimates for Gilead Sciences. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.85% higher. Gilead Sciences is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Gilead Sciences currently has a Forward P/E ratio of 9.8. Its industry sports an average Forward P/E of 20.5, so we one might conclude that Gilead Sciences is trading at a discount comparatively.
Also, we should mention that GILD has a PEG ratio of 0.67. 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 was holding an average PEG ratio of 1.36 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 59, putting it in the top 24% 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.
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