/Gilead%20Sciences%2C%20Inc_%20pills-by%20%20Marc%20Bruxelle%20via%20Shutterstock.jpg)
With a market cap of $80.6 billion, Gilead Sciences, Inc. (GILD) is a leading biopharmaceutical company specializing in drugs for HIV, liver diseases, hematology/oncology, and inflammation/respiratory diseases. Headquartered in California, its HIV franchise includes key therapies like Genvoya, Odefsey, Descovy, Biktarvy, and Truvada. The company also offers hepatitis C virus drugs like Harvoni and Epclusa and an HBV drug.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Gilead Sciences fits this criterion perfectly. The pharma company boasts a robust portfolio of innovative antiviral and antiretroviral therapies, led by its flagship drug, Truvada, and is expanding into oncology through strategic collaborations and acquisitions.
However, shares of the drug manufacturer have slipped 26.8% from its 52-week high of $87.86, achieved on Jan. 19. Moreover, shares of Gilead Sciences have dropped 12.4% over the past three months, underperforming the broader Nasdaq Composite's ($NASX) 11.8% gain over the same time frame.
In the longer term, GILD stock has declined 18.6% over the past 52 weeks and dipped 20.8% on a YTD basis, lagging behind NASX's 30.4% gains over the past year and 19% returns in 2024.
GILD has been trading below its 200-day and 50-day moving averages since early February, indicating a bearish price trend.
Gilead Sciences has faced headwinds at the beginning of 2024. The company experienced a significant setback on January 22, when its shares dropped nearly 10% after a pivotal drug failed to extend the lives of lung cancer patients. This disappointing outcome shook investors' confidence and challenged Gilead's aspirations in the cancer treatment space.
Additionally, GILD’s shares dropped 2.7% on April 25 after the company reported Q1 earnings results. Despite beating estimates, Gilead reported a loss of $4.2 billion, or $3.34 per share, with adjusted losses of $1.32 per share. The market also reacted negatively to the revised annual EPS guidance range of $3.45 to $3.85, which was lower than the forecast of $6.85 to $7.25.
To further highlight Gilead's underperformance, its competitor Amgen Inc. (AMGN) has been outperforming the stock. Over the past 52 weeks, Amgen's shares have surged 32.1% and are up 5.3% on a YTD basis, compared to GILD's double-digit dips.
Despite its underperformance in the broader market, analysts remain cautiously optimistic about GILD stock’s prospects. Among the 24 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and the mean price target of $82.45 is a premium of 28.3% to current market prices.
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.
