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Gilead Sciences (GILD) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3 mins read

Gilead Sciences (GILD) closed at $62.85 in the latest trading session, marking a +0.96% move from the prior day. The stock lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.51%, while the tech-heavy Nasdaq added 1.87%.

Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 5.03% over the past month. This has lagged the Medical sector's loss of 2.02% and the S&P 500's loss of 4.08% in that time.

Wall Street will be looking for positivity from GILD as it approaches its next earnings report date. In that report, analysts expect GILD to post earnings of $1.90 per share. This would mark 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 might also notice recent changes to analyst estimates for GILD. 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. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.52% lower within the past month. GILD is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, GILD is currently trading at a Forward P/E ratio of 9. For comparison, its industry has an average Forward P/E of 23.87, which means GILD is trading at a discount to the group.

It is also worth noting that GILD currently has a PEG ratio of 0.7. 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 1.54 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 189, putting it in the bottom 26% 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.


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