The most recent trading session ended with Gilead Sciences (GILD) standing at $105.87, reflecting a -1.53% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.33%.
Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 0.13% over the past month. This has was narrower than the Medical sector's loss of 0.63% and the S&P 500's loss of 7.48% in that time.
Investors will be eagerly watching for the performance of Gilead Sciences in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.73, indicating a 231.06% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.78 billion, up 1.36% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.87 per share and revenue of $28.55 billion, indicating changes of +70.35% and -0.7%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Gilead Sciences. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.34% upward. Gilead Sciences is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Gilead Sciences is currently being traded at a Forward P/E ratio of 13.67. This denotes a discount relative to the industry's average Forward P/E of 19.05.
It is also worth noting that GILD currently has a PEG ratio of 0.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.56.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.
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This article originally published on Zacks Investment Research (zacks.com).
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