Why Gilead Sciences (GILD) Outpaced the Stock Market Today
In the latest trading session, Gilead Sciences (GILD) closed at $73.66, marking a +1.42% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.03%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 1.51%.
Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 2.41% over the past month. This has lagged the Medical sector's gain of 2.1% and the S&P 500's gain of 3.21% in that time.
Investors will be eagerly watching for the performance of Gilead Sciences in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.57, indicating a 14.6% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.3 billion, down 0.82% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.07 per share and revenue of $27.45 billion, which would represent changes of +5.21% and +1.22%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Gilead Sciences. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.77% decrease. Right now, Gilead Sciences possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Gilead Sciences is at present trading with a Forward P/E ratio of 10.27. This expresses a discount compared to the average Forward P/E of 21.72 of its industry.
It is also worth noting that GILD currently has a PEG ratio of 0.92. 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 average PEG ratio for the Medical - Biomedical and Genetics industry stood at 1.61 at the close of the market yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
