Gilead Sciences (GILD) closed the most recent trading day at $110.67, moving +2.83% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 1%, while the tech-heavy Nasdaq appreciated by 0.52%.
The stock of HIV and hepatitis C drugmaker has fallen by 3.14% in the past month, lagging the Medical sector's gain of 3.5% and the S&P 500's gain of 5.95%.
The investment community will be closely monitoring the performance of Gilead Sciences in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.99, marking a 1% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7 billion, indicating a 0.65% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.92 per share and a revenue of $28.64 billion, signifying shifts of +71.43% and -0.39%, respectively, from the last year.
Any recent changes to analyst estimates for Gilead Sciences should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Gilead Sciences currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Gilead Sciences is currently exchanging hands at a Forward P/E ratio of 13.6. This indicates a discount in contrast to its industry's Forward P/E of 19.05.
It is also worth noting that GILD currently has a PEG ratio of 0.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.35.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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