Gilead Sciences’ Strong Performance Highlights Investor Confidence
Gilead Sciences, Inc. (GILD) currently holds a market capitalization of $143.8 billion. Based in Foster City, California, this biopharmaceutical firm focuses on discovering, developing, and commercializing medicines addressing various unmet medical needs. The company is particularly known for its treatments for human immunodeficiency virus (HIV), liver diseases, hematology/oncology disorders, and inflammation/respiratory diseases.
As a “large-cap stock,” GILD’s market cap exceeds the $10 billion threshold, demonstrating its significant influence within the drug manufacturing industry. Renowned for therapies like Biktarvy, Truvada, and Harvoni aimed at HIV and hepatitis C, Gilead is expanding its footprint in oncology and cell therapy. Its robust research and development pipeline, combined with a global market presence and a commitment to innovative treatments, sets GILD apart from its competitors.
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Recently, Gilead reached its 52-week high of $117.39 on March 4 and is presently trading 1.7% below that peak. Over the past three months, GILD shares have climbed by 23.6%, significantly outperforming the iShares U.S. Pharmaceuticals ETF (IHE), which saw a gain of only 5.6% in the same period.
In a broader context, Gilead’s stock has surged by 58.2% over the past 52 weeks, while IHE trails with a return of 7.1%. Year-to-date, GILD is up 25%, compared to IHE’s 10.5% increase.
GILD’s bullish trend is evident as it has traded above its 200-day moving average since late July 2024, along with remaining above its 50-day moving average since mid-June 2024, despite slight volatility.
On February 11, Gilead reported its Q4 earnings, with shares jumping 7.5% the next day after the company posted adjusted earnings of $1.90 per share, up 10.5% from the same quarter last year. Revenue for the period increased by 6.4% year-over-year to $7.6 billion, surpassing Wall Street’s expectations by 7.2%. This growth is driven by strong performance in the HIV and oncology segments, particularly with contributions from products like Biktarvy and Trodelvy.
Looking forward to 2025, Gilead anticipates product sales in the range of $28.2 billion to $28.6 billion and expects adjusted EPS between $7.70 and $8.10, showing confidence in the enduring demand for its core products.
When compared to its competitor, Amgen Inc. (AMGN), which gained 14.4% over the past 52 weeks and 21.5% year-to-date, GILD’s performance stands out.
Analysts maintain a moderately optimistic outlook for Gilead given its recent success relative to peers. The stock has a consensus rating of “Moderate Buy” from 29 analysts covering it. Currently trading above its average price target of $110.35, the highest price target of $132 indicates a potential upside of 14.3%.
On the date of publication, Neharika Jain did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and may not reflect those of Nasdaq, Inc.
