Back to top

Image: Bigstock

Gilead Sciences (GILD) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

In the latest trading session, Gilead Sciences (GILD - Free Report) closed at $121.36, marking a +2.17% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.16%. Elsewhere, the Dow saw a downswing of 0.47%, while the tech-heavy Nasdaq depreciated by 1.81%.

Coming into today, shares of the HIV and hepatitis C drugmaker had lost 6.6% in the past month. In that same time, the Medical sector gained 1.68%, while the S&P 500 gained 1.03%.

The upcoming earnings release of Gilead Sciences will be of great interest to investors. It is anticipated that the company will report an EPS of $1.86, marking a 2.11% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $7.57 billion, down 0.05% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.17 per share and a revenue of $29.06 billion, representing changes of +76.84% and +1.05%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Gilead Sciences. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. Gilead Sciences is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Gilead Sciences currently has a Forward P/E ratio of 14.55. For comparison, its industry has an average Forward P/E of 18.29, which means Gilead Sciences is trading at a discount to the group.

Also, we should mention that GILD has a PEG ratio of 0.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Biomedical and Genetics industry had an average PEG ratio of 1.69 as trading concluded yesterday.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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