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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 $72.51 in the latest trading session, marking a +0.36% move from the prior day. This change outpaced the S&P 500's 0.19% gain on the day. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.27%.

Heading into today, shares of the HIV and hepatitis C drugmaker had lost 7.46% over the past month, lagging the Medical sector's gain of 2.12% and the S&P 500's gain of 0.74% in that time.

Wall Street will be looking for positivity from GILD as it approaches its next earnings report date. This is expected to be October 25, 2018. In that report, analysts expect GILD to post earnings of $1.62 per share. This would mark a year-over-year decline of 28.63%. Meanwhile, our latest consensus estimate is calling for revenue of $5.38 billion, down 17.31% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.58 per share and revenue of $21.58 billion, which would represent changes of -25.57% and -17.32%, respectively, from the prior year.

Any recent changes to analyst estimates for GILD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. GILD is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, GILD is currently trading at a Forward P/E ratio of 11.01. This valuation marks a discount compared to its industry's average Forward P/E of 26.79.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow GILD in the coming trading sessions, be sure to utilize Zacks.com.


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