The most recent trading session ended with Gilead Sciences (GILD Quick QuoteGILD – Free Report) standing at $79.20, reflecting a +2% shift from the previouse trading day’s closing. The stock outperformed the S&P 500, which registered a daily gain of 1.06%. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 1.2%.
Shares of the HIV and hepatitis C drugmaker have appreciated by 2.62% over the course of the past month, outperforming the Medical sector’s loss of 3.74% and the S&P 500’s loss of 3%.
Analysts and investors alike will be keeping a close eye on the performance of Gilead Sciences in its upcoming earnings disclosure. The company’s earnings report is set to go public on November 7, 2023. On that day, Gilead Sciences is projected to report earnings of $1.92 per share, which would represent year-over-year growth of 1.05%. Simultaneously, our latest consensus estimate expects the revenue to be $6.76 billion, showing a 3.98% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.64 per share and a revenue of $26.78 billion, indicating changes of -8.54% and -1.84%, respectively, from the former 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. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% increase. Currently, Gilead Sciences is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Gilead Sciences is currently trading at a Forward P/E ratio of 11.69. This indicates a discount in contrast to its industry’s Forward P/E of 17.01.
It is also worth noting that GILD currently has a PEG ratio of 0.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. Medical – Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.94 based on yesterday’s closing prices.
The Medical – Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 34% of all industries, numbering over 250.
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.