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Gilead Sciences (GILD) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
Annaly Capital Management (NLY) closed the most recent trading day at $10, moving -0.6% from the previous trading session.

Gilead Sciences (GILD) closed at $73.88 in the latest trading session, marking a +0.31% move from the prior day. This move outpaced the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.08%.

Coming into today, shares of the HIV and hepatitis C drugmaker had gained 0.48% in the past month. In that same time, the Medical sector gained 2.73%, while the S&P 500 gained 2.1%.

Wall Street will be looking for positivity from GILD as it approaches its next earnings report date. This is expected to be October 25, 2018. In that report, analysts expect GILD to post earnings of $1.62 per share. This would mark a year-over-year decline of 28.63%. Meanwhile, our latest consensus estimate is calling for revenue of $5.38 billion, down 17.31% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.58 per share and revenue of $21.55 billion, which would represent changes of -25.57% and -17.47%, respectively, from the prior year.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, GILD is holding a Forward P/E ratio of 11.19. This represents a discount compared to its industry's average Forward P/E of 28.6.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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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