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

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Gilead Sciences (GILD - Free Report) closed at $77.73 in the latest trading session, marking a +0.93% move from the prior day. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq added 0.07%.

The the stock of HIV and hepatitis C drugmaker has risen by 12.24% in the past month, leading the Medical sector's gain of 0.48% and the S&P 500's loss of 0.21%.

Market participants will be closely following the financial results of Gilead Sciences in its upcoming release. The company plans to announce its earnings on August 8, 2024. The company is predicted to post an EPS of $1.60, indicating a 19.4% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.65 billion, indicating a 0.84% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.75 per share and a revenue of $27.44 billion, indicating changes of -44.2% and +1.17%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Gilead Sciences. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. Gilead Sciences is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Gilead Sciences is currently being traded at a Forward P/E ratio of 20.52. For comparison, its industry has an average Forward P/E of 24.58, which means Gilead Sciences is trading at a discount to the group.

Meanwhile, GILD's PEG ratio is currently 3.27. 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 2.07 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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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