Gilead Sciences (GILD) closed at $112.26 in the latest trading session, marking a +1.26% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.1% for the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq lost 0.33%.
The HIV and hepatitis C drugmaker's shares have seen a decrease of 6.03% over the last month, not keeping up with the Medical sector's gain of 0.86% and the S&P 500's gain of 2.57%.
The investment community will be closely monitoring the performance of Gilead Sciences in its forthcoming earnings report. The company is predicted to post an EPS of $2.15, indicating a 6.44% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.42 billion, showing a 1.63% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.1 per share and revenue of $28.75 billion, which would represent changes of +75.32% and -0.01%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Gilead Sciences. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 a 0.15% fall in the Zacks Consensus EPS estimate. Right now, Gilead Sciences possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Gilead Sciences is currently trading at a Forward P/E ratio of 13.69. This represents a discount compared to its industry average Forward P/E of 19.95.
Investors should also note that GILD has a PEG ratio of 0.75 right now. 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. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.65.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 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.
To follow GILD in the coming trading sessions, be sure to utilize Zacks.com.
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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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