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Gilead Sciences (GILD) Stock Moves -0.03%: What You Should Know

Zacks Equity Research

Gilead Sciences (GILD) closed the most recent trading day at $66.92, moving -0.03% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.65%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.46%.

Coming into today, shares of the HIV and hepatitis C drugmaker had lost 1.85% in the past month. In that same time, the Medical sector lost 0.52%, while the S&P 500 gained 4.11%.

Investors will be hoping for strength from GILD as it approaches its next earnings release, which is expected to be July 30, 2019. On that day, GILD is projected to report earnings of $1.73 per share, which would represent a year-over-year decline of 9.42%. Meanwhile, our latest consensus estimate is calling for revenue of $5.52 billion, down 2.24% from the prior-year quarter.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $6.90 per share and revenue of $22.09 billion. These results would represent year-over-year changes of +3.45% and -0.18%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. GILD is currently a Zacks Rank #3 (Hold).

Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 9.71. For comparison, its industry has an average Forward P/E of 23.19, which means GILD is trading at a discount to the group.

Also, we should mention that GILD has a PEG ratio of 3.07. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.85 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 57, which puts it in the top 23% 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.

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


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