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Gilead Sciences (GILD) Stock Sinks As Market Gains: What You Should Know

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Gilead Sciences (GILD - Free Report) closed the most recent trading day at $64.31, moving -1.11% from the previous trading session. This change lagged the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 1.04%.

Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 3.84% over the past month. This has lagged the Medical sector's gain of 2.27% and the S&P 500's gain of 4.38% in that time.

Wall Street will be looking for positivity from GILD as it approaches its next earnings report date. The company is expected to report EPS of $1.68, up 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.71 billion, down 1.51% from the prior-year quarter.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. GILD currently has a Zacks Rank of #2 (Buy).

Digging into valuation, GILD currently has a Forward P/E ratio of 9.28. For comparison, its industry has an average Forward P/E of 24.99, which means GILD is trading at a discount to the group.

We can also see that GILD currently has a PEG ratio of 3.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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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