The Invesco Biotechnology & Genome ETF (PBE) is a passively managed fund with $418.99 million in assets, offering exposure to the Healthcare-Biotech sector. With a 0.59% expense ratio and 1.38% dividend yield, it returned 18.51% over the past year but carries higher risk with a beta of 0.70 and 20.16% standard deviation. The fund holds 33 concentrated positions with top holdings including Royalty Pharma, Gilead Sciences, and Biogen. PBE received a Zacks ETF Rank of 3 (Hold), with larger competitors XBI and IBB offering lower expense ratios.

The article explains how investors can use the Zacks Earnings ESP (Expected Surprise Prediction) filter to identify stocks likely to beat earnings expectations. The ESP compares the most accurate analyst estimates to consensus estimates, and when combined with a Zacks Rank #3 or better, stocks posted positive surprises 70% of the time with average annual returns of 28%. Two medical stocks highlighted as examples are Gilead Sciences (GILD) with a +2.18% ESP and CVS Health (CVS) with a +0.79% ESP, both holding Rank #3 (Hold) ratings.

The article compares two healthcare ETFs: IBB (biotech-focused) and IYH (broad healthcare). IBB has delivered stronger 1-year returns (38% vs 17.4%) but exhibits higher volatility and deeper drawdowns. IYH offers lower costs, higher dividend yield, and broader diversification, making it better for most long-term investors, while IBB suits those with conviction in biotech momentum who can tolerate volatility.

Gilead Sciences (GILD) closed at $151.17, up 2.77% and outperforming the S&P 500. The HIV and hepatitis C drugmaker is expected to report a 13.36% EPS decline for the upcoming quarter, though revenue is projected to increase 0.51%. The stock holds a Zacks Rank #3 (Hold) rating, with the Medical - Biomedical and Genetics industry ranked 177th out of 250+ industries.

The article explains the Zacks Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat earnings estimates by comparing the most accurate analyst estimates to consensus estimates. When combined with a Zacks Rank #3 or better, this approach has historically resulted in positive surprises 70% of the time with ~28% average annual returns. Two medical stocks highlighted as examples are Iovance Biotherapeutics (IOVA) with a +22.22% ESP and Gilead Sciences (GILD) with a +2.18% ESP, both positioned to potentially beat their upcoming earnings reports.

VanEck Pharmaceutical ETF (PPH) offers lower costs (0.36% expense ratio) and higher dividend yield (2%), making it better for long-term buy-and-hold investors. Invesco Pharmaceuticals ETF (PJP) delivered stronger 1-year returns (41% vs 31%) with more balanced U.S.-focused holdings, but charges higher fees (0.58%) and offers lower yield (0.9%).

Gilead Sciences stock declined 1.87% to $144.74 while broader markets gained, underperforming the S&P 500's 0.73% rise. The HIV and hepatitis C drugmaker has lost 2.46% over the past month, with the Medical sector down 3.74%. Upcoming earnings are projected at $2.15 per share (down 12.96% year-over-year) with revenue expected at $7.79 billion (up 0.3%). The stock holds a Zacks Rank #3 (Hold) rating.

Gilead Sciences (GILD), an HIV and hepatitis C drugmaker, is a trending stock with mixed fundamentals. The company maintains a Zacks Rank #3 (Hold) rating, suggesting near-term performance in line with the broader market. While Gilead has beaten consensus estimates in the last four quarters and shows modest revenue growth forecasts of 4.4% and 6.1% for the current and next fiscal years, earnings estimates remain challenged with a projected -105.9% year-over-year change for the current fiscal year. The stock is valued at par with its peers.

Gilead Sciences declined 1.21% on September 30, 2026, underperforming the S&P 500's 0.25% loss. The HIV and hepatitis C drugmaker faces headwinds with projected quarterly EPS down 12.96% year-over-year, though revenue is expected to rise slightly by 0.3%. The company holds a Zacks Rank #3 (Hold) rating with consensus EPS estimates revised 2.2% lower over the past month.

The Invesco Nasdaq Biotechnology ETF (IBBQ) offers lower costs (0.19% expense ratio) and higher 1-year returns (44.6%), making it suitable for growth-focused investors willing to accept volatility. The iShares U.S. Healthcare ETF (IYH) provides broader diversification across 100 healthcare holdings with higher dividend yield (1.1%) and lower volatility, appealing to conservative investors seeking stability and income.

A comprehensive market research report analyzing co-development deals in pharmaceuticals and biotechnology from 2016-2026 has been released. The report covers deal structures, financial terms, the top 25 most active dealmakers, and provides access to actual SEC-filed contract documents. Co-development partnerships are highlighted as a strategic approach for companies to share R&D costs, risks, and commercial opportunities while accelerating product development timelines.

AstraZeneca's stock has declined following several late-stage pipeline failures including Wainua in ATTR-CM, Ultomiris in HSCT-TMA, volrustomig in NSCLC, and Etcamah in breast cancer. However, the company maintains a broad pipeline with over 20 expected high-value readouts in the next 18 months, particularly in oncology. The stock trades at a reasonable valuation of 16.29x forward earnings, below industry average, though 2026-2027 earnings estimates have been revised downward.