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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 at $66.12 in the latest trading session, marking a +0.53% move from the prior day. This change lagged the S&P 500's 0.72% gain on the day. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.91%.

Coming into today, shares of the HIV and hepatitis C drugmaker had gained 3.07% in the past month. In that same time, the Medical sector gained 6.05%, while the S&P 500 gained 2.64%.

GILD will be looking to display strength as it nears its next earnings release. On that day, GILD is projected to report earnings of $1.68 per share, which would represent year-over-year growth of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.71 billion, down 1.48% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.01 per share and revenue of $22.29 billion. These totals would mark changes of +5.1% and +0.71%, respectively, from last 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. GILD is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note GILD's current valuation metrics, including its Forward P/E ratio of 9.38. This valuation marks a discount compared to its industry's average Forward P/E of 26.12.

Also, we should mention that GILD has a PEG ratio of 3.84. 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. GILD's industry had an average PEG ratio of 1.75 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 56, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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