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After GILD Earnings, Which Biomed Stock is Best Right Now?
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Shares of Gilead Sciences (GILD - Free Report) are down about 8.3% Tuesday after the company posted a relatively disappointing earnings report. Despite topping earnings expectations, Gilead revised its full-year guidance below its previously announced range.
Gilead announced second-quarter earnings of $3.03 per share, beating the Zacks Consensus Estimate by a penny. However, the company missed our revenue estimate by about $7 million, and management also revised full-year sales guidance to a range of $29.5-$30.5 million, below our consensus estimate of $31.23 million and its previously announced range of $30-$31 million.
With Gilead underperforming, the spotlight is on the rest of the biomed sector as investors will be looking for the next hot stock to buy. We are right in the middle of Q2 earnings season, but recent results and positive estimate revisions are pointing to a few companies at the moment.
Actelion reported its Q2 earnings last week, and it was mostly good news from the company. It reported earnings of $2.07 per share, which smashed the Zacks Consensus Estimate of $1.86, and revenues were up 16% to $607.7 million. Our consensus estimate for Actelion’s revenues was $589 million.
Actelion was boosted by product sales growth of 15% worldwide and 25% in the U.S. The company’s launch of Uptravi was a success, and its Opsumit product continues to perform well. Most importantly, the company now expects core operating income growth for the year in the low-teen percentage range, up from its previously announced high single-digit range.
Innoviva is expected to release its latest earnings data later this week, and things are looking solid heading into the report. Our Zacks Consensus Estimate currently calls for earnings of 12 cents per share, which would represent EPS growth of 276%. Sales growth is also expected to grow by over 190%.
Looking towards the earnings report, Innoviva currently has a positive Earnings ESP of 25%. With a positive Earnings ESP and a strong Zacks Rank, the company could be in a great position to beat earnings expectations this quarter.
ANI Pharmaceuticals is also getting ready to report its latest earnings, and we expect an announcement on August 2. This stock has been one of the hottest in the biomed industry, with shares already up about 30% on the year.
In the last seven days, ANI has seen one positive earnings estimate revision, giving it a positive Earnings ESP of 2.63%. Again, with a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), investors should feel more comfortable with ANI going into earnings.
Bottom Line
For many investors, Gilead is the go-to stock in the biomed industry. However, with revenues looking sluggish this year, these three Zacks Rank #1 (Strong Buy) stocks might end up being a better bet.
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After GILD Earnings, Which Biomed Stock is Best Right Now?
Shares of Gilead Sciences (GILD - Free Report) are down about 8.3% Tuesday after the company posted a relatively disappointing earnings report. Despite topping earnings expectations, Gilead revised its full-year guidance below its previously announced range.
Gilead announced second-quarter earnings of $3.03 per share, beating the Zacks Consensus Estimate by a penny. However, the company missed our revenue estimate by about $7 million, and management also revised full-year sales guidance to a range of $29.5-$30.5 million, below our consensus estimate of $31.23 million and its previously announced range of $30-$31 million.
With Gilead underperforming, the spotlight is on the rest of the biomed sector as investors will be looking for the next hot stock to buy. We are right in the middle of Q2 earnings season, but recent results and positive estimate revisions are pointing to a few companies at the moment.
Check out these three biomed stocks:
1. Actelion Limited ) – Zacks Rank #1 (Strong Buy)
Actelion reported its Q2 earnings last week, and it was mostly good news from the company. It reported earnings of $2.07 per share, which smashed the Zacks Consensus Estimate of $1.86, and revenues were up 16% to $607.7 million. Our consensus estimate for Actelion’s revenues was $589 million.
Actelion was boosted by product sales growth of 15% worldwide and 25% in the U.S. The company’s launch of Uptravi was a success, and its Opsumit product continues to perform well. Most importantly, the company now expects core operating income growth for the year in the low-teen percentage range, up from its previously announced high single-digit range.
2. Innoviva Inc. (INVA - Free Report) – Zacks Rank #1 (Strong Buy)
Innoviva is expected to release its latest earnings data later this week, and things are looking solid heading into the report. Our Zacks Consensus Estimate currently calls for earnings of 12 cents per share, which would represent EPS growth of 276%. Sales growth is also expected to grow by over 190%.
Looking towards the earnings report, Innoviva currently has a positive Earnings ESP of 25%. With a positive Earnings ESP and a strong Zacks Rank, the company could be in a great position to beat earnings expectations this quarter.
3. ANI Pharmaceuticals (ANIP - Free Report) –Zacks Rank #1 (Strong Buy)
ANI Pharmaceuticals is also getting ready to report its latest earnings, and we expect an announcement on August 2. This stock has been one of the hottest in the biomed industry, with shares already up about 30% on the year.
In the last seven days, ANI has seen one positive earnings estimate revision, giving it a positive Earnings ESP of 2.63%. Again, with a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), investors should feel more comfortable with ANI going into earnings.
Bottom Line
For many investors, Gilead is the go-to stock in the biomed industry. However, with revenues looking sluggish this year, these three Zacks Rank #1 (Strong Buy) stocks might end up being a better bet.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>