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Gilead Sciences (GILD) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Gilead Sciences (GILD - Free Report) closed at $88.08, marking a -0.77% move from the previous day. This move lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.78%.

The HIV and hepatitis C drugmaker's stock has climbed by 5.87% in the past month, exceeding the Medical sector's loss of 4.09% and the S&P 500's gain of 1.67%.

Investors will be eagerly watching for the performance of Gilead Sciences in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 6, 2024. The company's earnings per share (EPS) are projected to be $1.62, reflecting a 29.26% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.99 billion, reflecting a 0.86% fall from the equivalent quarter last year.

GILD's full-year Zacks Consensus Estimates are calling for earnings of $3.76 per share and revenue of $27.67 billion. These results would represent year-over-year changes of -44.05% and +2.04%, respectively.

Investors should also take note of any recent adjustments to analyst estimates 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.51% downward. Currently, Gilead Sciences is carrying a Zacks Rank of #3 (Hold).

Investors should also note Gilead Sciences's current valuation metrics, including its Forward P/E ratio of 23.59. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 23.59.

One should further note that GILD currently holds a PEG ratio of 3.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


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