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Gilead Sciences (GILD) Gains But Lags Market: What You Should Know

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Gilead Sciences (GILD - Free Report) closed the most recent trading day at $66.64, moving +0.36% from the previous trading session. This change lagged the S&P 500's 0.47% gain on the day. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq gained 0.85%.

Coming into today, shares of the HIV and hepatitis C drugmaker had lost 3.04% in the past month. In that same time, the Medical sector lost 3.1%, while the S&P 500 gained 2.08%.

Investors will be hoping for strength from GILD as it approaches its next earnings release, which is expected to be July 30, 2019. In that report, analysts expect GILD to post earnings of $1.74 per share. This would mark a year-over-year decline of 8.9%. Meanwhile, our latest consensus estimate is calling for revenue of $5.53 billion, down 2.04% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.91 per share and revenue of $22.14 billion. These totals would mark changes of +3.6% and +0.04%, respectively, from last year.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. GILD is currently a Zacks Rank #2 (Buy).

Digging into valuation, GILD currently has a Forward P/E ratio of 9.62. This valuation marks a discount compared to its industry's average Forward P/E of 22.98.

Investors should also note that GILD has a PEG ratio of 3.85 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 industry currently had an average PEG ratio of 1.85 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% 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.

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


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