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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 $64.20, moving -0.56% from the previous trading session. This move lagged the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.05%.

Prior to today's trading, shares of the HIV and hepatitis C drugmaker had gained 1.97% over the past month. This has outpaced the Medical sector's gain of 1.66% and lagged the S&P 500's gain of 3.85% 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 $1.76, down 4.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.62 billion, up 0.36% from the prior-year quarter.

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.

It is also important to note the recent changes to analyst estimates for GILD. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. GILD currently has a Zacks Rank of #3 (Hold).

Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 9.17. This represents a discount compared to its industry's average Forward P/E of 28.35.

We can also see that GILD currently has a PEG ratio of 2.9. 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 1.68 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 91, which puts it in the top 36% 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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