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

Zacks Equity Research

Gilead Sciences (GILD) closed the most recent trading day at $63.54, moving -0.33% from the previous trading session. This change lagged the S&P 500's 0.06% gain on the day. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the HIV and hepatitis C drugmaker had lost 2.63% in the past month. In that same time, the Medical sector lost 2.13%, while the S&P 500 lost 2.95%.

Investors will be hoping for strength from GILD as it approaches its next earnings release. In that report, analysts expect GILD to post earnings of $1.80 per share. This would mark a year-over-year decline of 2.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.62 billion, up 0.36% from the year-ago period.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $7.04 per share and revenue of $22.33 billion. These results would represent year-over-year changes of +5.55% and +0.91%, respectively.

Any recent changes to analyst estimates for GILD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.25% higher. GILD is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, GILD is holding a Forward P/E ratio of 9.06. This valuation marks a discount compared to its industry's average Forward P/E of 27.22.

It is also worth noting that GILD currently has a PEG ratio of 2.86. 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 industry currently had an average PEG ratio of 1.94 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.

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


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