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Headquartered in Foster City, California, Gilead Sciences, Inc. (GILD) is a prominent biopharmaceutical company with a market cap of $114.2 billion. Gilead specializes in developing and delivering innovative therapies to treat life-threatening diseases, with a focus on areas such as virology, oncology, and inflammatory diseases.
Shares of GILD have underperformed the broader market over the past year. The stock has gained 21.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.4%. In 2024, GILD is up 20.9% compared to SPX’s 25.2% rise on a YTD basis.
Zooming in further, GILD has outperformed the Health Care Select Sector SPDR Fund's (XLV) 9.3% gain on a YTD basis.
Gilead Sciences has underperformed the broader market due to concerns about patent expirations on key drugs and increased competition in the pharma industry. However, shares of Gilead Sciences gained 6.8% following its Q3 earnings report on Nov.6. The company beat revenue forecasts, posting $7.55 billion, while its earnings of $2.02 topped Wall Street's expectations of $1.58. Also, Gilead projects full-year earnings to be between $4.25 to $4.45 per share.
For the current fiscal year, ending December, analysts expect Gilead to report an EPS decline of 44.1% to $3.76 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the past four quarters while missing the projections on another occasion.
Among the 27 analysts covering the stock, the consensus estimate is a “Moderate Buy” overall. That’s based on 15 “Strong Buy” ratings, one “Moderate Buy,” and 11 “Holds.”
This configuration is slightly more bullish than three months before, with 12 analysts recommending a “Strong Buy.”
On Nov. 7, Barclays analyst Carter Gould raised Gilead's price target to $95 from $84, citing strong Q3 performance driven by Veklury and Biktarvy.
Although the stock trades at a premium to the mean price target of $87.88, the Street-high price target of $123 suggests an upside potential of 25.6% to current price levels.
On the date of publication, Rashmi Kumari 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.
