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

·3-min read

Gilead Sciences (GILD) closed the most recent trading day at $67.18, moving +0.8% from the previous trading session. This change outpaced the S&P 500's 0.58% gain on the day.

Heading into today, shares of the HIV and hepatitis C drugmaker had gained 0.45% over the past month, lagging the Medical sector's gain of 2.01% and the S&P 500's gain of 2.17% in that time.

GILD will be looking to display strength as it nears its next earnings release. In that report, analysts expect GILD to post earnings of $1.74 per share. This would mark 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.

Investors should also note any recent changes to analyst estimates for GILD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 0.02% higher. GILD is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 9.42. This valuation marks a discount compared to its industry's average Forward P/E of 22.12.

It is also worth noting that GILD currently has a PEG ratio of 0.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.4 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 18% 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.

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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