Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Gilead Sciences (GILD - Free Report) closed at $78.55, marking a -1.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.95%, and the Nasdaq, a tech-heavy index, added 2.3%.

Coming into today, shares of the HIV and hepatitis C drugmaker had gained 17.92% in the past month. In that same time, the Medical sector lost 21.29%, while the S&P 500 lost 28.7%.

Investors will be hoping for strength from GILD as it approaches its next earnings release. On that day, GILD is projected to report earnings of $1.38 per share, which would represent a year-over-year decline of 21.59%. Meanwhile, our latest consensus estimate is calling for revenue of $5.37 billion, up 1.63% from the prior-year quarter.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $6.47 per share and revenue of $22.27 billion. These results would represent year-over-year changes of -2.41% and -0.81%, respectively.

Investors might also notice recent changes to analyst estimates for GILD. Recent revisions tend to reflect the latest 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.

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 0.32% lower within the past month. GILD is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, GILD is holding a Forward P/E ratio of 12.27. This valuation marks a discount compared to its industry's average Forward P/E of 22.53.

It is also worth noting that GILD currently has a PEG ratio of 5.61. 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 1.53 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Gilead Sciences, Inc. (GILD) - free report >>

Published in