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Gilead Sciences (GILD) Gains But Lags Market: What You Should Know

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In the latest trading session, Gilead Sciences (GILD - Free Report) closed at $64.51, marking a +0.58% move from the previous day. This move lagged the S&P 500's daily gain of 2.02%. Elsewhere, the Dow gained 1.6%, while the tech-heavy Nasdaq added 2.71%.

Coming into today, shares of the HIV and hepatitis C drugmaker had lost 5.82% in the past month. In that same time, the Medical sector lost 2.71%, while the S&P 500 lost 0.39%.

GILD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.90, up 8.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.38 billion, up 13.84% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.95 per share and revenue of $24.19 billion, which would represent changes of +4.83% and +7.75%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for GILD. 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 company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. GILD currently has a Zacks Rank of #3 (Hold).

In terms of valuation, GILD is currently trading at a Forward P/E ratio of 9.23. Its industry sports an average Forward P/E of 23.24, so we one might conclude that GILD is trading at a discount comparatively.

We can also see that GILD currently has a PEG ratio of 1.69. 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. GILD's industry had an average PEG ratio of 1.69 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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