Gilead Sciences (GILD) Gains As Market Dips: What You Should Know
Gilead Sciences (GILD) closed the most recent trading day at $58, moving +0.14% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.3%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.41%.
Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 6.26% over the past month. This has lagged the Medical sector's loss of 2.43% and the S&P 500's loss of 5.33% in that time.
Gilead Sciences will be looking to display strength as it nears its next earnings release. On that day, Gilead Sciences is projected to report earnings of $1.67 per share, which would represent a year-over-year decline of 19.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.22 billion, down 3.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.37 per share and revenue of $24.52 billion. These totals would mark changes of -12.5% and -10.19%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Gilead Sciences. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 2.82% lower. Gilead Sciences is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Gilead Sciences is holding a Forward P/E ratio of 9.1. Its industry sports an average Forward P/E of 20.75, so we one might conclude that Gilead Sciences is trading at a discount comparatively.
Meanwhile, GILD's PEG ratio is currently 0.42. 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 1.07 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 157, putting it in the bottom 39% 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.
To follow GILD in the coming trading sessions, be sure to utilize Zacks.com.
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