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Gilead Sciences (GILD) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Gilead Sciences (GILD - Free Report) closed at $68.41, marking a -1.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.82%.

Heading into today, shares of the HIV and hepatitis C drugmaker had gained 3.15% over the past month, outpacing the Medical sector's loss of 2.96% and lagging the S&P 500's gain of 3.89% in that time.

Investors will be hoping for strength from GILD as it approaches its next earnings release, which is expected to be July 29, 2021. On that day, GILD is projected to report earnings of $1.74 per share, which would represent year-over-year growth of 56.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.16 billion, up 19.84% from the year-ago period.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $7.05 per share and revenue of $24.75 billion. These results would represent year-over-year changes of -0.56% and +0.26%, respectively.

Investors might also notice recent changes to analyst estimates for GILD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% lower. GILD is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, GILD currently has a Forward P/E ratio of 9.81. For comparison, its industry has an average Forward P/E of 25.01, which means GILD is trading at a discount to the group.

Investors should also note that GILD has a PEG ratio of 0.64 right now. 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. GILD's industry had an average PEG ratio of 1.54 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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