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Gilead Sciences (GILD) Gains But Lags Market: What You Should Know

Gilead Sciences (GILD) closed the most recent trading day at $62.32, moving +1.02% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.59%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 0.07%.

Heading into today, shares of the HIV and hepatitis C drugmaker had lost 3.34% over the past month, outpacing the Medical sector's loss of 3.87% and the S&P 500's loss of 9.22% in that time.

Investors will be hoping for strength from Gilead Sciences as it approaches its next earnings release. The company is expected to report EPS of $1.53, down 42.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.09 billion, down 17.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.63 per share and revenue of $25.27 billion, which would represent changes of -8.93% and -7.46%, respectively, from the prior year.

Any recent changes to analyst estimates for Gilead Sciences should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. 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 9.31. This represents a discount compared to its industry's average Forward P/E of 19.26.

We can also see that GILD currently has a PEG ratio of 0.59. 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. GILD's industry had an average PEG ratio of 1.29 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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