Back to top

Image: Bigstock

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

Read MoreHide Full Article

Gilead Sciences (GILD - Free Report) closed the most recent trading day at $71.77, moving -0.15% from the previous trading session. This change lagged the S&P 500's 0.08% gain on the day. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 4.81%.

Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 0.61% over the past month. This has was narrower than the Medical sector's loss of 3.56% and lagged the S&P 500's gain of 0.64% in that time.

Gilead Sciences will be looking to display strength as it nears its next earnings release. On that day, Gilead Sciences is projected to report earnings of $1.43 per share, which would represent a year-over-year decline of 34.7%. Our most recent consensus estimate is calling for quarterly revenue of $6.39 billion, down 13.85% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Gilead Sciences. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 0.25% higher. Gilead Sciences is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Gilead Sciences has a Forward P/E ratio of 10.6 right now. Its industry sports an average Forward P/E of 18.23, so we one might conclude that Gilead Sciences is trading at a discount comparatively.

Investors should also note that GILD has a PEG ratio of 0.72 right now. 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 1.09 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 156, which puts it in the bottom 39% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Gilead Sciences, Inc. (GILD) - free report >>

Published in