Gilead Sciences (GILD) Stock Drops Despite Market Gains: Important Facts to Note

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.The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks