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Gilead Sciences (GILD) Outperforms Broader Market: What You Need to Know

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Gilead Sciences (GILD - Free Report) closed the most recent trading day at $77.88, moving +1.64% from the previous trading session. This change outpaced the S&P 500's 1.2% gain on the day. Elsewhere, the Dow saw an upswing of 1.58%, while the tech-heavy Nasdaq appreciated by 1.16%.

The HIV and hepatitis C drugmaker's stock has climbed by 2.24% in the past month, exceeding the Medical sector's loss of 7.05% and the S&P 500's loss of 3.58%.

The upcoming earnings release of Gilead Sciences will be of great interest to investors. The company's earnings report is expected on November 7, 2023. The company is predicted to post an EPS of $1.91, indicating a 0.53% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.77 billion, indicating a 3.8% decline compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.64 per share and a revenue of $26.8 billion, indicating changes of -8.54% and -1.75%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Gilead Sciences. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Gilead Sciences is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Gilead Sciences is holding a Forward P/E ratio of 11.53. This represents a discount compared to its industry's average Forward P/E of 15.77.

Meanwhile, GILD's PEG ratio is currently 0.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical - Biomedical and Genetics industry stood at 1.7 at the close of the market yesterday.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 27% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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