Industry Overview - The Zacks Medical – Biomedical and Genetics industry group ranks in the top 26% out of over 250 industries, indicating strong performance and potential for continued outperformance over the next 3 to 6 months [7] - The industry group has favorable metrics, with a PEG ratio of 1.57 and projected EPS growth of 13.18%, compared to the iShares S&P 500's PEG ratio of 2.12 and projected EPS growth of 6.87% [9] Company Highlights - Gilead Sciences (GILD) is a leading stock in the biomedical sector, known for its innovative medicines for life-threatening illnesses. It has a Zacks Rank of 2 (Buy) and has a trailing four-quarter average earnings surprise of 19.5% [11][12] - GILD reported fourth-quarter earnings of $1.90 per share, exceeding consensus estimates by 13.8%. The stock is trading at 14.5 times forward earnings and has increased over 23% in 2025, reaching a 52-week high [12][13] - Jazz Pharmaceuticals (JAZZ) is another strong performer in the same industry, holding a Zacks Rank of 1 (Strong Buy). The company focuses on neuroscience and oncology and has surpassed earnings estimates in three of the past four quarters [15][16] - JAZZ reported fourth-quarter earnings of $6.60 per share, a 14% surprise over consensus estimates. The stock trades at six times forward earnings, significantly below the industry average, and has advanced more than 11% this year [16][17][18] Investment Strategy - The Zacks Rank methodology helps identify stocks with positive earnings estimate revisions, which can lead to better investment outcomes. Stocks with a Zacks Rank of 3 or better and a positive Earnings ESP have produced positive surprises 70% of the time [20] - JAZZ has a Zacks Rank of 1 and an Earnings ESP of +3.6%, indicating potential for another earnings beat in the upcoming Q1 results [21]

Core Insights - Investors in the Medical - Biomedical and Genetics sector should consider Gilead Sciences (GILD) and Vertex Pharmaceuticals (VRTX) for potential value opportunities [1] Valuation Metrics - GILD has a forward P/E ratio of 14.49, while VRTX has a forward P/E of 28.07, indicating GILD may be undervalued compared to VRTX [5] - GILD's PEG ratio is 0.74, suggesting a favorable valuation when considering expected earnings growth, whereas VRTX's PEG ratio is 1.20 [5] - GILD's P/B ratio is 7.38, compared to VRTX's P/B of 7.78, further supporting GILD's stronger valuation metrics [6] Analyst Outlook - GILD currently holds a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to VRTX, which has a Zacks Rank of 3 (Hold) [3][6] - The solid earnings outlook for GILD positions it as the superior value option in comparison to VRTX [6]

Core Viewpoint - The article discusses the potential of bispecific antibodies to replace CAR-T therapies in the treatment of multiple myeloma, highlighting insights from Dr. Syed Abbas Ali of Johns Hopkins University [3][4][6]. Group 1: Bispecific Antibodies vs. CAR-T Therapies - Dr. Ali emphasizes that bispecific antibodies, particularly those targeting BCMA and CD3, may surpass CAR-T therapies in efficacy and safety, especially as physicians learn to manage toxicity better [6][7]. - The total response rate for Gilead-Arcellx's Anito-cel is reported at 100%, with lower toxicity compared to Johnson & Johnson's Carvykti, which is primarily used for high-risk patients [4][5]. - The safety profile of Anito-cel shows significant advantages, with a median onset of cytokine release syndrome (CRS) at 2 days and a duration of 3 days, compared to Carvykti's 7 days onset and 4 days duration [5]. Group 2: Market Dynamics and Competitive Landscape - The article notes that Blenrep from GlaxoSmithKline faces challenges in regaining market trust after its previous withdrawal, with analysts expressing concerns over its sales growth potential [8]. - Sanofi's Sarclisa is seen as a competitor to Johnson & Johnson's Darzalex, but the latter's ease of use as a monthly subcutaneous injection poses a significant challenge for Sarclisa [9]. - The article highlights the increasing accessibility of blood component apheresis for CAR-T therapy, which has improved patient treatment options [4].

Core Viewpoint - Gilead Sciences, Inc. announced positive data from its phase I study of lenacapavir, a once-yearly injectable HIV-1 capsid inhibitor for pre-exposure prophylaxis (PrEP) [1][2][4] Group 1: Study Results - The phase I study evaluated the pharmacokinetics, safety, and tolerability of two intramuscular single-dose 5000mg lenacapavir formulations, involving 40 healthy adults aged 18 to 55 [3][6] - The study demonstrated that both formulations achieved and maintained plasma concentrations exceeding those associated with HIV prevention efficacy observed in late-stage studies [4][5] - The most commonly reported adverse event was injection site pain, which was alleviated by pretreatment with an ice pack, with medication-emergent adverse events being mostly mild to moderate [6] Group 2: Market Position and Future Plans - Gilead's shares have increased by 56.8% over the past year, contrasting with an 8.6% decline in the industry [2] - The company plans to initiate a phase III study for once-yearly lenacapavir in the second half of 2025 [4] - Lenacapavir is already approved in multiple countries for treating adults with multi-drug resistant HIV, and its potential approval for PrEP could further solidify Gilead's position in the HIV market [8][10] Group 3: Competitive Landscape - Gilead's Biktarvy remains the top prescribed regimen for both treatment-naïve and switch patients, maintaining a strong market share [8][10] - The approval of lenacapavir would enhance Gilead's competitive edge, as it requires administration only twice yearly compared to daily oral medications [10] - The HIV treatment landscape is becoming increasingly competitive, with GSK reporting a 13% growth in HIV sales in 2024, driven by demand for long-acting injectable medicines [12][13]

Core Insights - Gilead Sciences is preparing for the commercialization of its BCMA CAR T therapy, anito-cel, in partnership with Arcellx, with a launch anticipated next year [5]. Efficacy and Safety Data - The BCMA CAR T therapy has demonstrated a compelling 62% complete response rate and a 97% overall response rate, indicating strong efficacy in both high-risk and general populations with myeloma [6]. - Safety data shows that 86% of patients experienced grade one or no cytokine release syndrome (CRS) events, with the majority only experiencing mild symptoms such as fever [6]. - Long-term neurotoxicities associated with the therapy are also showing differentiation, suggesting a favorable safety profile [6].

Group 1: Market Overview - In 2024, technology stocks involved in artificial intelligence (AI) led the Nasdaq-100 index higher, while healthcare stocks struggled due to concerns about Robert F. Kennedy's nomination for Health and Human Services Secretary [1] - In 2025, the technology sector has disappointed investors, while healthcare stocks have led the U.S. market higher, with Gilead Sciences being the best performing member of the Nasdaq-100 index as of March 9, achieving a year-to-date return of 27% [1] Group 2: Company Performance - AppLovin reported a 44% increase in revenue to $1.3 billion in Q4, with non-GAAP net income more than tripling, but the stock has fallen 47% from its high this year due to negative reports from short sellers [3] - Palantir consistently beat Wall Street's expectations with its financial results last year, but the stock has fallen 32% from its high this year due to concerns about insider selling and possible Pentagon budget cuts [4] - Nvidia, the market leader in data center GPUs, has seen its stock fall 25% from its high this year due to concerns about the sustainability of AI infrastructure spending and export restrictions [5] Group 3: Analyst Sentiment - Despite recent declines, Wall Street remains predominantly bullish on AppLovin, Palantir, and Nvidia, with median target prices implying substantial upside for shareholders [6] - AppLovin's median target price of $555 per share implies 132% upside from its current share price of $239, Palantir's median target price of $97 per share implies 22% upside from its current share price of $79, and Nvidia's median target price of $175 per share implies 65% upside from its current share price of $106 [10] Group 4: Gilead Sciences - Gilead Sciences is a pharmaceutical company with a strong presence in the HIV and oncology markets, known for developing the first once-daily tablet for HIV treatment and receiving approval for a pre-exposure prophylaxis (PrEP) HIV medication [7] - Gilead reported Q4 financial results that beat Wall Street expectations, with revenue increasing 6% to $7.6 billion and non-GAAP net income increasing 10% to $1.90 per diluted share [8] - Gilead anticipates regulatory approval of twice-yearly lenacapavir injections for HIV pre-exposure prophylaxis in the U.S. and updates from two phase-3 clinical trials involving Trodelvy, which has been designated as a breakthrough therapy by the FDA [9][12] - Gilead shares trade at a reasonable price, with Wall Street expecting adjusted earnings to increase at 32% annually over the next two years, making the current price-to-earnings (PE) multiple of 25 look fair [13]

Group 1 - Gilead Sciences (GILD) is outperforming the Medical sector with a year-to-date return of 27.1%, compared to the sector average gain of 6.8% [4] - Gilead Sciences holds a Zacks Rank of 2 (Buy), indicating strong analyst sentiment and an improving earnings outlook, with a 6.7% increase in the consensus earnings estimate for the full year [3] - The Medical - Biomedical and Genetics industry, which includes Gilead Sciences, has an average gain of 8% year-to-date, further highlighting GILD's strong performance [6] Group 2 - ANIXA BIOSCIENCES INC (ANIX) is another Medical stock that has outperformed the sector, with a year-to-date increase of 22.4% [4] - ANIXA BIOSCIENCES INC also holds a Zacks Rank of 2 (Buy), with a 10.9% increase in the consensus EPS estimate over the past three months [5] - Both Gilead Sciences and ANIXA BIOSCIENCES INC are expected to maintain their solid performance in the Medical sector [7]

Core Insights - Gilead Sciences has reached new 52-week highs, joining other healthcare stocks amid broader market pullbacks [1][2] - The stock has increased nearly 30% year-to-date, while the broader market indexes are in negative territory [2] Gilead's Industry Leadership - Gilead is a leader in developing drugs for HIV treatment and has a diverse portfolio for liver diseases, inflammation, respiratory diseases, and hematology/oncology [3] - Expected revenue for 2024 is $28.75 billion, with a projected dip of 1% this year but a rebound to $29.7 billion in fiscal 2026 [3] Gilead's EPS Growth - Annual earnings are projected to increase by 70% in FY25 to $7.87 per share, up from $4.62 last year, with a further 5% increase expected in FY26 [4] Gilead's P/E Valuation - Gilead trades at a forward earnings multiple of 14.6X, below Johnson & Johnson's 15.6X and the industry average of 19.1X [8] Gilead's Dividend - Gilead offers a 2.65% annual dividend yield, surpassing the S&P 500 average of 1.27% and the industry average of 1.49% [10] Bottom Line - Gilead Sciences holds a Zacks Rank 2 (Buy), indicating potential for further upside as EPS estimates for FY25 and FY26 have trended higher [12]

Company Performance - Gilead Sciences (GILD) shares have increased by 17.1% over the past month, reaching a new 52-week high of $117.39 [1] - The stock has gained 24.2% since the beginning of the year, outperforming the Zacks Medical sector and the Zacks Medical - Biomedical and Genetics industry, both of which have seen a 6% return [1] Earnings and Revenue Expectations - Gilead has a strong record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - For the current fiscal year, Gilead is expected to report earnings of $7.86 per share on revenues of $28.55 billion, reflecting a 70.13% change in EPS and a -0.7% change in revenues [3] - For the next fiscal year, earnings are projected to be $8.17 per share on revenues of $29.7 billion, indicating a year-over-year change of 3.9% in EPS and 4.01% in revenues [3] Valuation Metrics - Gilead's current valuation metrics show it trades at 14.6X current fiscal year EPS estimates, below the peer industry average of 19.3X [7] - On a trailing cash flow basis, Gilead trades at 16.7X compared to the peer group's average of 15.4X, with a PEG ratio of 0.75 [7] Zacks Rank and Style Scores - Gilead holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, making it a suitable choice for investors [8] - The company has a Value Score of B, Growth Score of B, and Momentum Score of B, resulting in a combined VGM Score of A [6] Industry Comparison - The Medical - Biomedical and Genetics industry is performing well, ranking in the top 30% of all industries, providing favorable conditions for Gilead and its peers [11] - Jazz Pharmaceuticals PLC (JAZZ), a competitor, has a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, with a projected EPS of $23.12 on revenues of $4.3 billion for the current fiscal year [9][10]

Group 1 - Gilead Sciences, Inc. is experiencing strong performance in a challenging biotech market, with its stock significantly outperforming peers [1] - The company reported an 8% year-on-year growth in 2024, driven by demand-led volume growth in key products such as BIKTARVY, DESCOVY, and its oncology and liver portfolios [4] - For 2025, Gilead's guidance indicates a flat year-over-year product sales growth of approximately -0.5%, excluding BIKTARVY, with expectations for continued growth in the coming years [4]