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Gilead Sciences (GILD) Dips More Than Broader Markets: What You Should Know

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Gilead Sciences (GILD - Free Report) closed the most recent trading day at $59.84, moving -1.51% from the previous trading session. This change lagged the S&P 500's 0.44% loss on the day. At the same time, the Dow lost 0.62%, and the tech-heavy Nasdaq gained 0.5%.

Coming into today, shares of the HIV and hepatitis C drugmaker had lost 2.05% in the past month. In that same time, the Medical sector gained 1.54%, while the S&P 500 gained 1.39%.

GILD will be looking to display strength as it nears its next earnings release. On that day, GILD is projected to report earnings of $1.79 per share, which would represent year-over-year growth of 37.69%. Our most recent consensus estimate is calling for quarterly revenue of $6.49 billion, up 10.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.63 per share and revenue of $23.70 billion, which would represent changes of 0% and +5.57%, respectively, from the prior year.

Any recent changes to analyst estimates for GILD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. GILD currently has a Zacks Rank of #4 (Sell).

In terms of valuation, GILD is currently trading at a Forward P/E ratio of 9.02. Its industry sports an average Forward P/E of 22.51, 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 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. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.57 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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.

To follow GILD in the coming trading sessions, be sure to utilize Zacks.com.


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