With a market cap of $121,1 billion, Gilead Sciences, Inc. (GILD) is a leading biopharmaceutical company specializing in the discovery, development, and commercialization of innovative medicines. Based in Foster City, California, the company is renowned for its focus on treating serious diseases, particularly in the areas of HIV/AIDS, liver diseases, oncology, and inflammatory conditions.
Shares of GILD have outperformed the broader market over the past year. The stock has gained 23.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.7%. In 2025, GILD is up 5.2% compared to SPX’s 2.7% rise on a YTD basis.
Zooming in further, GILD has also surpassed the Health Care Select Sector SPDR Fund's (XLV) 4.5% gain over the past year.
Gilead Sciences has thrived in a turbulent market, with its stock surging 26.8% over six months, outperforming both its industry and the S&P 500. This momentum has been fueled by new drug approvals, pipeline advancements, strong clinical data, and solid quarterly results, including an upgraded 2024 guidance driven by Veklury's sales growth. Gilead’s HIV franchise remains dominant, with Biktarvy propelling HIV sales growth projections to 5% for 2024. The company’s innovative pipeline includes lenacapavir, a twice-yearly treatment option showing 100% efficacy in HIV prevention trials, positioning it as a potential game-changer.
In its Q3 earnings report released on Nov. 6, Gilead exceeded top- and bottom-line expectations, raising its 2024 product sales forecast to $27.8–$28.1 billion and adjusted earnings guidance to $4.25–$4.45 per share, driving a 6.8% surge in its stock.
For FY2024, with results due next week, analysts project a 35.4% decline in diluted EPS to $4.34. Gilead has delivered mixed earnings surprises in recent quarters, beating expectations in three of the last four while falling short once.
Among the 29 analysts covering the stock, the consensus estimate is a “Moderate Buy” overall. That’s based on 17 “Strong Buy” ratings and 12 “Holds.”
This configuration is slightly more bullish than a month before, with 16 analysts recommending a “Strong Buy.”
On January 29, JPMorgan Chase & Co. (JPM) analyst Chris Schott reaffirmed his “Buy” rating on Gilead Sciences and set a price target of $115.
GILD’s mean price target of $100.15 suggests an upside potential of 3% to current price levels. The Street-high target of $125 implies a premium of 28.6% from the prevailing price level.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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