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

Zacks Equity Research

Gilead Sciences (GILD) closed the most recent trading day at $63.99, moving +1.15% from the previous trading session. This change outpaced the S&P 500's 1.09% gain on the day. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.34%.

Heading into today, shares of the HIV and hepatitis C drugmaker had lost 4.67% over the past month, lagging the Medical sector's loss of 3.27% and the S&P 500's loss of 1.17% in that time.

Wall Street will be looking for positivity from GILD as it approaches its next earnings report date. This is expected to be October 24, 2019. The company is expected to report EPS of $1.76, down 4.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.62 billion, up 0.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.04 per share and revenue of $22.33 billion. These totals would mark changes of +5.55% and +0.9%, 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 0.12% higher. GILD is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, GILD currently has a Forward P/E ratio of 8.98. This represents a discount compared to its industry's average Forward P/E of 27.66.

Meanwhile, GILD's PEG ratio is currently 2.84. 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 1.85 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 85, putting it in the top 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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