Gilead Sciences (GILD) closed at $131.14 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 0.55% gain on the day. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.91%.
The HIV and hepatitis C drugmaker's stock has climbed by 2.74% in the past month, exceeding the Medical sector's gain of 0.19% and the S&P 500's gain of 0.71%.
The investment community will be paying close attention to the earnings performance of Gilead Sciences in its upcoming release. It is anticipated that the company will report an EPS of $1.86, marking a 2.11% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $7.57 billion, down 0.05% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.14 per share and a revenue of $29.06 billion, indicating changes of +76.19% and 0%, respectively, from the former year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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, the Zacks Consensus EPS estimate has shifted 0.19% downward. As of now, Gilead Sciences holds a Zacks Rank of #3 (Hold).
Investors should also note Gilead Sciences's current valuation metrics, including its Forward P/E ratio of 15.14. This signifies a discount in comparison to the average Forward P/E of 19.55 for its industry.
One should further note that GILD currently holds a PEG ratio of 0.68. 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 industry currently had an average PEG ratio of 1.43 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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