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

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In the latest trading session, Gilead Sciences (GILD - Free Report) closed at $72.34, marking a +0.65% move from the previous day. This move outpaced the S&P 500's daily gain of 0.28%.

Prior to today's trading, shares of the HIV and hepatitis C drugmaker had gained 3.8% over the past month. This has outpaced the Medical sector's gain of 2.77% and the S&P 500's gain of 3.07% in that time.

GILD will be looking to display strength as it nears its next earnings release. In that report, analysts expect GILD to post earnings of $1.65 per share. This would mark a year-over-year decline of 21.8%. Meanwhile, our latest consensus estimate is calling for revenue of $6.14 billion, down 6.71% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.15 per share and revenue of $25.05 billion. These totals would mark changes of +0.85% and +1.47%, respectively, from last year.

Any recent changes to analyst estimates for GILD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 0.01% higher. GILD is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 10.06. This valuation marks a discount compared to its industry's average Forward P/E of 27.05.

We can also see that GILD currently has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.62 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 202, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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