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Why Gilead Sciences (GILD) Outpaced the Stock Market Today

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Gilead Sciences (GILD - Free Report) closed at $68.75 in the latest trading session, marking a +1.46% move from the prior day. This change outpaced the S&P 500's 1.02% gain on the day. On the other hand, the Dow registered a gain of 1.09%, and the technology-centric Nasdaq increased by 1.18%.

Heading into today, shares of the HIV and hepatitis C drugmaker had gained 4.42% over the past month, outpacing the Medical sector's loss of 1.82% and lagging the S&P 500's gain of 4.44% in that time.

Investors will be eagerly watching for the performance of Gilead Sciences in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 8, 2024. The company's earnings per share (EPS) are projected to be $1.58, reflecting a 17.91% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.66 billion, indicating a 0.92% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.76 per share and a revenue of $27.47 billion, demonstrating changes of -44.05% and +1.32%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Gilead Sciences. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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, there's been no change in the Zacks Consensus EPS estimate. Gilead Sciences is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Gilead Sciences is presently trading at a Forward P/E ratio of 18.02. This represents a discount compared to its industry's average Forward P/E of 23.12.

We can additionally observe that GILD currently boasts a PEG ratio of 2.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 27% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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