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Gilead Sciences (GILD) Gains But Lags Market: What You Should Know

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In the latest trading session, Gilead Sciences (GILD - Free Report) closed at $66.46, marking a +1.64% move from the previous day. The stock lagged the S&P 500's daily gain of 2.6%.

Coming into today, shares of the HIV and hepatitis C drugmaker had gained 0.32% in the past month. In that same time, the Medical sector lost 8.72%, while the S&P 500 lost 12.9%.

Investors will be hoping for strength from Gilead Sciences as it approaches its next earnings release. In that report, analysts expect Gilead Sciences to post earnings of $1.52 per share. This would mark a year-over-year decline of 42.64%. Our most recent consensus estimate is calling for quarterly revenue of $6.12 billion, down 17.57% from the year-ago period.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $6.59 per share and revenue of $25.27 billion. These results would represent year-over-year changes of -9.48% and -7.44%, respectively.

Investors might also notice recent changes to analyst estimates for Gilead Sciences. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.58% lower. Gilead Sciences currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Gilead Sciences has a Forward P/E ratio of 9.92 right now. This represents a discount compared to its industry's average Forward P/E of 20.24.

Investors should also note that GILD has a PEG ratio of 0.63 right now. 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. GILD's industry had an average PEG ratio of 1.37 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 59, putting it in the top 24% 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.

To follow GILD in the coming trading sessions, be sure to utilize Zacks.com.


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