Back to top

Image: Bigstock

Gilead Sciences (GILD) Exceeds Market Returns: Some Facts to Consider

Read MoreHide Full Article

The latest trading session saw Gilead Sciences (GILD - Free Report) ending at $78.15, denoting a +0.76% adjustment from its last day's close. This change outpaced the S&P 500's 0.73% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.93%.

Shares of the HIV and hepatitis C drugmaker have appreciated by 3.65% over the course of the past month, outperforming the Medical sector's loss of 4.57% and the S&P 500's loss of 2.29%.

Analysts and investors alike will be keeping a close eye on the performance of Gilead Sciences in its upcoming earnings disclosure. The company's earnings report is set to go public on November 7, 2023. The company is predicted to post an EPS of $1.92, indicating a 1.05% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.76 billion, down 3.98% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $6.65 per share and a revenue of $26.79 billion, demonstrating changes of -8.4% and -1.8%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Gilead Sciences. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.17% rise in the Zacks Consensus EPS estimate. Gilead Sciences presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Gilead Sciences is presently being traded at a Forward P/E ratio of 11.67. This represents a discount compared to its industry's average Forward P/E of 16.06.

We can also see that GILD currently has a PEG ratio of 0.89. 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. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.77.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 66, positioning it in the top 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gilead Sciences, Inc. (GILD) - free report >>

Published in