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

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In the latest trading session, Gilead Sciences (GILD) closed at $67.43, marking a +1.43% move from the previous day. This move outpaced the S&P 500's daily gain of 0.88%.

Heading into today, shares of the HIV and hepatitis C drugmaker had lost 0.09% over the past month, outpacing the Medical sector's loss of 1.22% and lagging the S&P 500's gain of 0.15% 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 $1.72, up 54.95% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.15 billion, up 19.57% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.07 per share and revenue of $24.74 billion. These totals would mark changes of -0.28% and +0.22%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for GILD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GILD is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 9.4. This represents a discount compared to its industry's average Forward P/E of 18.98.

It is also worth noting that GILD currently has a PEG ratio of 0.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.29 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 202, putting it in the bottom 21% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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