Gilead Sciences (GILD) Dips More Than Broader Markets: What You Should Know

·3-min read

In the latest trading session, Gilead Sciences (GILD) closed at $67.22, marking a -0.16% move from the previous day. This change lagged the S&P 500's daily loss of 0.04%.

Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 1.71% over the past month. This has lagged the Medical sector's gain of 3.23% and the S&P 500's gain of 1.35% in that time.

Wall Street will be looking for positivity from GILD as it approaches its next earnings report date. On that day, GILD is projected to report earnings of $1.74 per share, which would represent year-over-year growth of 56.76%. Meanwhile, our latest consensus estimate is calling for revenue of $6.15 billion, up 19.57% from the prior-year quarter.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $7.07 per share and revenue of $24.74 billion. These results would represent year-over-year changes of -0.28% and +0.22%, respectively.

It is also important to note the recent changes to analyst estimates for GILD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. GILD is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that GILD has a Forward P/E ratio of 9.52 right now. This represents a discount compared to its industry's average Forward P/E of 23.56.

Meanwhile, GILD's PEG ratio is currently 0.62. 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 Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.39 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 214, which puts it in the bottom 16% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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