Gilead Sciences (GILD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Gilead Sciences (GILD) closed at $77.81, marking a -1.68% move from the previous day. This move lagged the S&P 500's daily loss of 1.65%. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 6.65%.
Heading into today, shares of the HIV and hepatitis C drugmaker had lost 6.5% over the past month, lagging the Medical sector's loss of 1.27% and the S&P 500's gain of 0.3% in that time.
Investors will be hoping for strength from Gilead Sciences as it approaches its next earnings release. The company is expected to report EPS of $1.62, down 23.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.43 billion, down 2.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.86 per share and revenue of $26.68 billion. These totals would mark changes of -5.51% and -2.19%, respectively, from last year.
Any recent changes to analyst estimates for Gilead Sciences should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. Gilead Sciences currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Gilead Sciences currently has a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 18.53, so we one might conclude that Gilead Sciences is trading at a discount comparatively.
Meanwhile, GILD's PEG ratio is currently 0.94. 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 1.77 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 95, which puts it in the top 38% 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.
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