Gilead Sciences (GILD) Gains But Lags Market: What You Should
This story originally appeared on Zacks
Gilead Sciences (GILD) closed at $72.37 in the latest trading session, marking a +0.39% move from the prior day. This change lagged the S&P 500’s 0.92% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.
Coming into today, shares of the HIV and hepatitis C drugmaker had gained 2.1% in the past month. In that same time, the Medical sector lost 2.74%, while the S&P 500 lost 0.85%.
Wall Street will be looking for positivity from Gilead Sciences as it approaches its next earnings report date. In that report, analysts expect Gilead Sciences to post earnings of $1.43 per share. This would mark a year-over-year decline of 34.7%. Meanwhile, our latest consensus estimate is calling for revenue of $6.39 billion, down 13.85% from the prior-year quarter.
Any recent changes to analyst estimates for Gilead Sciences should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.26% higher. Gilead Sciences currently has a Zacks Rank of #3 (Hold).
Investors should also note Gilead Sciences’s current valuation metrics, including its Forward P/E ratio of 10.65. For comparison, its industry has an average Forward P/E of 18.17, which means Gilead Sciences is trading at a discount to the group.
Also, we should mention that GILD has a PEG ratio of 0.88. 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. The Medical – Biomedical and Genetics was holding an average PEG ratio of 1.27 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 103, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
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