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

·3 min read

In the latest trading session, Gilead Sciences (GILD) closed at $65.10, marking a +0.48% move from the previous day. The stock lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.08%.

Heading into today, shares of the HIV and hepatitis C drugmaker had gained 2.61% over the past month, outpacing the Medical sector's loss of 4.7% and the S&P 500's loss of 3.79% in that time.

Investors will be hoping for strength from Gilead Sciences as it approaches its next earnings release. On that day, Gilead Sciences is projected to report earnings of $1.52 per share, which would represent a year-over-year decline of 42.64%. Our most recent consensus estimate is calling for quarterly revenue of $6.09 billion, down 17.93% from the year-ago period.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $6.62 per share and revenue of $25.27 billion. These results would represent year-over-year changes of -9.07% and -7.47%, respectively.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. Gilead Sciences is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Gilead Sciences currently has a Forward P/E ratio of 9.78. This valuation marks a discount compared to its industry's average Forward P/E of 20.12.

Investors should also note that GILD has a PEG ratio of 0.67 right now. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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