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Gilead Sciences (GILD) Gains As Market Dips: What You Should Know

Gilead Sciences (GILD) closed the most recent trading day at $66.38, moving +0.65% from the previous trading session. This change outpaced the S&P 500's 0.68% loss on the day.

Coming into today, shares of the HIV and hepatitis C drugmaker had gained 3.74% in the past month. In that same time, the Medical sector lost 1.49%, while the S&P 500 gained 6.62%.

Wall Street will be looking for positivity from GILD as it approaches its next earnings report date. This is expected to be April 29, 2021. On that day, GILD is projected to report earnings of $2.02 per share, which would represent year-over-year growth of 20.24%. Meanwhile, our latest consensus estimate is calling for revenue of $6.81 billion, up 22.76% from the prior-year quarter.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $7.22 per share and revenue of $24.76 billion. These results would represent year-over-year changes of +1.83% and +0.28%, respectively.

Investors might also notice recent changes to analyst estimates for GILD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. GILD currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that GILD has a Forward P/E ratio of 9.25 right now. Its industry sports an average Forward P/E of 26.35, so we one might conclude that GILD is trading at a discount comparatively.

Meanwhile, GILD's PEG ratio is currently 0.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.5 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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