U.S. Markets close in 2 hrs 32 mins

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

Zacks Equity Research

In the latest trading session, Gilead Sciences (GILD) closed at $63.43, marking a +1.28% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 6.13% over the past month. This has lagged the Medical sector's gain of 0.81% and the S&P 500's gain of 3.23% in that time.

Investors will be hoping for strength from GILD as it approaches its next earnings release, which is expected to be February 4, 2020. The company is expected to report EPS of $1.68, up 16.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.71 billion, down 1.51% from the year-ago period.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GILD currently has a Zacks Rank of #2 (Buy).

Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 8.87. This valuation marks a discount compared to its industry's average Forward P/E of 28.59.

It is also worth noting that GILD currently has a PEG ratio of 3.63. 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 1.62 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.