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

Zacks Equity Research

In the latest trading session, Gilead Sciences (GILD) closed at $65.23, marking a -0.18% move from the previous day. This change lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.4%.

Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 0.56% over the past month. This has was narrower than the Medical sector's loss of 1.58% and lagged the S&P 500's loss of 0.14% in that time.

Investors will be hoping for strength from GILD as it approaches its next earnings release, which is expected to be October 24, 2019. In that report, analysts expect GILD to post earnings of $1.76 per share. This would mark a year-over-year decline of 4.35%. Our most recent consensus estimate is calling for quarterly revenue of $5.62 billion, up 0.43% from the year-ago period.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $7.05 per share and revenue of $22.31 billion. These results would represent year-over-year changes of +5.7% and +0.82%, respectively.

Investors should also note any recent changes to analyst estimates for GILD. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.45% higher. GILD is currently a Zacks Rank #3 (Hold).

Looking at its valuation, GILD is holding a Forward P/E ratio of 9.28. For comparison, its industry has an average Forward P/E of 27.81, which means GILD is trading at a discount to the group.

Meanwhile, GILD's PEG ratio is currently 2.93. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.

To follow GILD in the coming trading sessions, be sure to utilize Zacks.com.

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