In the latest trading session, Gilead Sciences (GILD) closed at $105.93, marking a -1.18% move from the previous day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.31%.
Coming into today, shares of the HIV and hepatitis C drugmaker had lost 1.73% in the past month. In that same time, the Medical sector gained 3.46%, while the S&P 500 gained 5.05%.
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 $1.99, signifying a 1.00% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7 billion, up 0.65% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.92 per share and revenue of $28.64 billion, which would represent changes of +71.43% and -0.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Gilead Sciences. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Gilead Sciences currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Gilead Sciences has a Forward P/E ratio of 13.54 right now. This denotes a discount relative to the industry average Forward P/E of 19.83.
It's also important to note that GILD currently trades at a PEG ratio of 0.69. 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. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.37.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% 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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