Gilead Sciences (GILD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Gilead Sciences (GILD) closed at $77.73, marking a -0.61% move from the previous day. This change lagged the S&P 500's daily gain of 7.03%. At the same time, the Dow added 7.73%, and the tech-heavy Nasdaq gained 7.33%.
Heading into today, shares of the HIV and hepatitis C drugmaker had gained 2.73% over the past month, outpacing the Medical sector's loss of 8.85% and the S&P 500's loss of 16.9% in that time.
Wall Street will be looking for positivity from GILD as it approaches its next earnings report date. The company is expected to report EPS of $1.38, down 21.59% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.37 billion, up 1.63% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.47 per share and revenue of $22.27 billion. These totals would mark changes of -2.41% and -0.81%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for GILD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% lower. GILD currently has a Zacks Rank of #4 (Sell).
Digging into valuation, GILD currently has a Forward P/E ratio of 12.1. For comparison, its industry has an average Forward P/E of 26.6, which means GILD is trading at a discount to the group.
It is also worth noting that GILD currently has a PEG ratio of 5.71. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow GILD in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
