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Valued at a market cap of $143.8 billion, Gilead Sciences, Inc. (GILD) is a biopharmaceutical company that discovers, develops, and commercializes medicines in the areas of unmet medical need. The Foster City, California-based company develops drugs for the treatment of human immunodeficiency virus, liver diseases, haematology/oncology diseases, and inflammation/respiratory diseases.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and GILD fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the drug manufacturers - general industry. The company is best known for its HIV and hepatitis C therapies, including Biktarvy, Truvada, and Harvoni. The company also has a growing presence in oncology and cell therapy. Its strong R&D pipeline, global market reach, and focus on innovative treatments distinguish it from others.
This healthcare giant touched its 52-week high of $117.39 recently on Mar. 4 and is currently trading 1.7% below it. Shares of GILD have rallied 23.6% over the past three months, considerably outpacing the iShares U.S. Pharmaceuticals ETF’s (IHE) 5.6% gain during the same time frame.
In the longer term, GILD has soared 58.2% over the past 52 weeks, significantly outpacing IHE’s 7.1% return. Moreover, on a YTD basis, shares of GILD are up 25%, compared to IHE’s 10.5% rise over the same time frame.
To confirm its bullish trend, GILD has been trading above its 200-day moving average since late July 2024, and has remained above its 50-day moving average since mid-June 2024, with slight fluctuations.
On Feb. 11, GILD released its Q4 earnings results. Shares of the company closed up 7.5% the following day as it delivered above-par Q4 adjusted earnings of $1.90 per share, which improved 10.5% from the year-ago quarter. Moreover, its revenue advanced 6.4% year-over-year to $7.6 billion and exceeded Wall Street’s expectations by a notable 7.2%. Robust growth in its HIV and oncology segments, fueled by notable contributions from products like Biktarvy and Trodelvy, led to its strong performance.
Looking ahead, for 2025, Gilead projects product sales between $28.2 billion and $28.6 billion, and expects adjusted EPS between $7.70 and $8.10, reflecting confidence in sustained demand for its key products.
GILD’s outperformance becomes more evident when compared to its rival, Amgen Inc. (AMGN), which gained 14.4% over the past 52 weeks and 21.5% on a YTD basis.
Given GILD’s recent outperformance relative to its industry peers, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 29 analysts covering it. While GILD currently trades above its mean-price target of $110.35, the Street-high price target of $132 suggests a 14.3% upside potential.
