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Gilead Sciences (GILD) Dips More Than Broader Markets: What You Should Know

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Gilead Sciences (GILD - Free Report) closed the most recent trading day at $66.72, moving -0.04% from the previous trading session. This change lagged the S&P 500's daily loss of 0.02%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.08%.

Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 0.7% over the past month. This has lagged the Medical sector's gain of 5.88% and the S&P 500's gain of 3.81% 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 $1.68 per share, which would represent year-over-year growth of 16.67%. Our most recent consensus estimate is calling for quarterly revenue of $5.71 billion, down 1.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.01 per share and revenue of $22.29 billion, which would represent changes of +5.1% and +0.71%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GILD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. GILD is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, GILD is currently trading at a Forward P/E ratio of 9.52. This represents a discount compared to its industry's average Forward P/E of 25.76.

Also, we should mention that GILD has a PEG ratio of 3.9. 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.87 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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.

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


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