Gilead Sciences (GILD) Stock Slides as Market Rises: Facts to Know Before You Trade

In this article:

Gilead Sciences (GILD) closed the latest trading day at $83.79, indicating a -0.24% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.

The the stock of HIV and hepatitis C drugmaker has risen by 9.13% in the past month, leading the Medical sector's loss of 1.51% and the S&P 500's gain of 1.65%.

The investment community will be closely monitoring the performance of Gilead Sciences in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.66, reflecting a 27.51% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.98 billion, down 0.98% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.78 per share and a revenue of $27.63 billion, representing changes of -43.75% and +1.9%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Gilead Sciences. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Gilead Sciences presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Gilead Sciences is at present trading with a Forward P/E ratio of 22.23. Its industry sports an average Forward P/E of 21.46, so one might conclude that Gilead Sciences is trading at a premium comparatively.

We can additionally observe that GILD currently boasts a PEG ratio of 2.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical - Biomedical and Genetics industry stood at 2.21 at the close of the market yesterday.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement