Gilead Sciences (GILD) Gains But Lags Market: What You Should Know
In the latest trading session, Gilead Sciences (GILD) closed at $62.52, marking a +0.92% move from the previous day. This move lagged the S&P 500's daily gain of 1.49%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 2.56%.
Heading into today, shares of the HIV and hepatitis C drugmaker had gained 1.86% over the past month, outpacing the Medical sector's gain of 0.16% and the S&P 500's gain of 1.44% in that time.
Investors will be hoping for strength from GILD as it approaches its next earnings release. The company is expected to report EPS of $1.77, up 36.15% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.48 billion, up 10.3% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for GILD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 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. Within the past 30 days, our consensus EPS projection has moved 1% higher. GILD is currently a Zacks Rank #3 (Hold).
Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 8.98. For comparison, its industry has an average Forward P/E of 24.15, which means GILD is trading at a discount to the group.
Meanwhile, GILD's PEG ratio is currently 0.69. 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 1.1 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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