In the latest trading session, Gilead Sciences (GILD) closed at $109.06, marking a -2.7% move from the previous day. This change lagged the S&P 500's daily loss of 0.4%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, added 0.18%.
Coming into today, shares of the HIV and hepatitis C drugmaker had gained 1.14% in the past month. In that same time, the Medical sector lost 1.56%, while the S&P 500 gained 4.97%.
The investment community will be paying close attention to the earnings performance of Gilead Sciences in its upcoming release. The company's upcoming EPS is projected at $2, signifying a 0.50% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $7.03 billion, indicating a 1.07% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.94 per share and revenue of $28.68 billion. These totals would mark changes of +71.86% and -0.24%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Gilead Sciences. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. Gilead Sciences presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Gilead Sciences is presently trading at a Forward P/E ratio of 14.12. For comparison, its industry has an average Forward P/E of 17.7, which means Gilead Sciences is trading at a discount to the group.
One should further note that GILD currently holds a PEG ratio of 0.72. 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 average PEG ratio for the Medical - Biomedical and Genetics industry stood at 1.5 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 77, positioning it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Gilead Sciences, Inc. (GILD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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