Gilead Sciences (GILD) Outpaces Stock Market Gains: What You Should Know
Gilead Sciences (GILD) closed the most recent trading day at $65.88, moving +1.34% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.27%, while the tech-heavy Nasdaq added 1.29%.
Heading into today, shares of the HIV and hepatitis C drugmaker had lost 0.02% over the past month, lagging the Medical sector's gain of 1.35% and the S&P 500's gain of 1.92% in that time.
Investors will be hoping for strength from GILD as it approaches its next earnings release. On that day, GILD is projected to report earnings of $1.62 per share, which would represent year-over-year growth of 9.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.33 billion, up 4.8% from the year-ago period.
GILD's full-year Zacks Consensus Estimates are calling for earnings of $6.65 per share and revenue of $22.03 billion. These results would represent year-over-year changes of -0.3% and -0.42%, respectively.
Investors should also note any recent changes to analyst estimates for GILD. These revisions help to show the ever-changing nature of near-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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GILD is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, GILD currently has a Forward P/E ratio of 9.78. This represents a discount compared to its industry's average Forward P/E of 21.11.
It is also worth noting that GILD currently has a PEG ratio of 3.83. 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. GILD's industry had an average PEG ratio of 2.02 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 74, putting it in the top 30% 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.
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