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In the latest trading session, Gilead Sciences (GILD) closed at $106.67, marking a -0.38% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.77% for the day. On the other hand, the Dow registered a gain of 1.42%, and the technology-centric Nasdaq increased by 2.28%.
Prior to today's trading, shares of the HIV and hepatitis C drugmaker had lost 2.61% over the past month. This has lagged the Medical sector's loss of 1.17% and was narrower than the S&P 500's loss of 5.73% in that time.
The investment community will be paying close attention to the earnings performance of Gilead Sciences in its upcoming release. The company is expected to report EPS of $1.73, up 231.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.78 billion, up 1.36% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.87 per share and revenue of $28.55 billion. These totals would mark changes of +70.35% and -0.7%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Gilead Sciences. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Gilead Sciences is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Gilead Sciences is currently exchanging hands at a Forward P/E ratio of 13.61. Its industry sports an average Forward P/E of 18.52, so one might conclude that Gilead Sciences is trading at a discount comparatively.
It's also important to note that GILD currently trades at a PEG ratio of 0.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.