In the latest trading session, Gilead Sciences (GILD) closed at $69.38, marking a +1.18% move from the previous day. This move outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Heading into today, shares of the HIV and hepatitis C drugmaker had gained 2.08% over the past month, lagging the Medical sector's gain of 5.8% and the S&P 500's gain of 4.13% 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 $1.73, down 9.42% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.52 billion, down 2.24% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.89 per share and revenue of $22.07 billion. These totals would mark changes of +3.3% and -0.25%, respectively, from last year.
Any recent changes to analyst estimates for GILD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. GILD is currently a Zacks Rank #2 (Buy).
Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 9.95. This valuation marks a discount compared to its industry's average Forward P/E of 23.53.
It is also worth noting that GILD currently has a PEG ratio of 0.63. 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. GILD's industry had an average PEG ratio of 1.83 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 74, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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