Back to top

Image: Bigstock

Gilead Sciences (GILD) Exceeds Market Returns: Some Facts to Consider

Read MoreHide Full Article

Gilead Sciences (GILD - Free Report) closed the most recent trading day at $117.86, moving +2.26% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.85%. Elsewhere, the Dow gained 1.36%, while the tech-heavy Nasdaq added 0.72%.

The HIV and hepatitis C drugmaker's stock has dropped by 4.07% in the past month, falling short of the Medical sector's gain of 6.01% and the S&P 500's gain of 2.38%.

The upcoming earnings release of Gilead Sciences will be of great interest to investors. On that day, Gilead Sciences is projected to report earnings of $2.15 per share, which would represent year-over-year growth of 6.44%. Simultaneously, our latest consensus estimate expects the revenue to be $7.42 billion, showing a 1.63% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.1 per share and revenue of $28.75 billion, which would represent changes of +75.32% and -0.01%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Gilead Sciences. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% higher. Gilead Sciences is currently a Zacks Rank #3 (Hold).

In the context of valuation, Gilead Sciences is at present trading with a Forward P/E ratio of 14.23. This signifies a discount in comparison to the average Forward P/E of 20.81 for its industry.

Investors should also note that GILD has a PEG ratio of 0.78 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 1.62 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 94, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


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


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

Published in