Gilead Sciences (GILD) closed at $147.83 in the latest trading session, marking a -1.46% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, lost 1.02%.
The HIV and hepatitis C drugmaker's stock has climbed by 5% in the past month, exceeding the Medical sector's gain of 2.62% and the S&P 500's loss of 1.3%.
Market participants will be closely following the financial results of Gilead Sciences in its upcoming release. It is anticipated that the company will report an EPS of $1.86, marking a 2.76% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.86 billion, reflecting a 2.93% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.66 per share and a revenue of $30.15 billion, indicating changes of +6.26% and +2.4%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Gilead Sciences. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.59% higher. At present, Gilead Sciences boasts a Zacks Rank of #3 (Hold).
Investors should also note Gilead Sciences's current valuation metrics, including its Forward P/E ratio of 17.33. For comparison, its industry has an average Forward P/E of 19.56, which means Gilead Sciences is trading at a discount to the group.
Meanwhile, GILD's PEG ratio is currently 1.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 137, positioning it in the bottom 45% 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.
You can find more information on all of these metrics, and much more, on 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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