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]

Core Viewpoint - The health care sector is leading the market in 2025, contrary to expectations regarding the new administration's impact on pharmaceutical stocks [1] Sector Performance - The S&P 500 Health Care sector has shown a year-to-date performance of 8.45%, outperforming other sectors such as Consumer Staples (8.23%) and Financials (6.83%) [2] - Despite the overall S&P 500 Index being down 0.54% for the year, 9 out of 11 sectors remain in positive territory [2] Market Dynamics - There has been significant sector rotation, with investors moving away from growth and technology stocks towards more defensive sectors like health care and utilities [3] - The Zacks Medical – Biomedical and Genetics industry is currently ranked in the top 29% of approximately 250 Zacks Ranked Industries, indicating strong relative strength [8] Stock Analysis - Gilead Sciences (GILD) is highlighted as a leading stock within the biomedical industry, with a diversified product pipeline and expected FDA approval for its Lenacapavir solution for HIV prevention [10] - Gilead Sciences has a Zacks Rank of 2 (Buy) and has exceeded earnings expectations in the last four quarters, averaging a positive EPS surprise of 19.5% [11] - The stock has appreciated over 65% in the past year and is making new 52-week highs [11] Investment Strategy - The Zacks Rank System is designed to help identify winning stocks and outperform the market by focusing on industries and stocks with positive earnings estimate revisions [6] - The emphasis is on investing in leading stocks to maximize potential returns, particularly in the current market environment characterized by volatility [5][13]

Company Overview - Gilead Sciences operates in over 35 countries and focuses on innovative medicines for life-threatening diseases, including HIV, COVID-19, and cancer[16]. - The company has a diverse product portfolio, including treatments for HIV, COVID-19, and various cancers, with ongoing advancements in their therapeutic areas[18][20][22]. - Gilead's innovative medicines include first-in-class therapies that improve efficacy and reduce side effects, addressing unmet medical needs in virology and oncology[17]. Financial Performance - Total revenues increased by 6% to $28.8 billion in 2024, compared to $27.1 billion in 2023, driven by higher sales in HIV, Oncology, and Liver Disease[197]. - Net income attributable to Gilead decreased by 92% to $480 million in 2024, down from $5.7 billion in 2023, primarily due to increased expenses and impairment charges[198]. - Diluted earnings per share attributable to Gilead fell to $0.38 in 2024, compared to $4.50 in 2023[198]. Sales and Market Dynamics - In 2024, approximately 91% of U.S. product sales and 65% of total worldwide revenues were generated from three large wholesalers: Cardinal Health, Cencora, and McKesson[29]. - HIV product sales increased 8% to $19.6 billion in 2024, driven by higher demand and average realized price[204]. - Biktarvy sales rose 13% to $13.4 billion, primarily due to increased demand from patients switching from Genvoya and other Gilead products[203]. - Liver Disease product sales grew 9% to $3.0 billion, attributed to higher demand for chronic hepatitis treatments and the launch of Livdelzi[206]. - Veklury sales decreased 18% to $1.8 billion, mainly due to reduced COVID-19-related hospitalizations[207]. - Cell Therapy product sales increased 6% to $2.0 billion, driven by higher demand for Yescarta and Tecartus outside the U.S.[208]. - Trodelvy sales surged 24% to $1.3 billion, reflecting increased demand across all regions[209]. - A substantial portion of the company's sales is subject to discounts from list prices, including rebates to Medicaid agencies, which may limit the effect of price increases on net product sales[77]. Research and Development - The company has filed a New Drug Application for lenacapavir, a twice-yearly injectable HIV-1 capsid inhibitor for pre-exposure prophylaxis[34]. - Bulevirtide, for chronic hepatitis delta virus infection, has a Biologics License Application pending with the FDA, having received Orphan Drug and Breakthrough Therapy designations[34]. - Gilead's R&D efforts are focused on viral diseases, cancer, and inflammatory diseases, with significant resources allocated to both internal and external development[31]. - The company has committed to advancing its R&D pipeline, with several product candidates in Phase 3 clinical trials or pending marketing authorization reviews[33]. - Gilead plans to continue investing in its R&D pipeline, which includes over 100 pre-clinical and clinical-stage programs across core therapeutic areas[200]. Regulatory and Compliance - The company is subject to extensive regulations governing manufacturing processes, including compliance with current Good Manufacturing Practices (cGMP) as defined by FDA and EMA, which can lead to significant delays if new suppliers need qualification[75]. - The company must comply with the Risk Evaluation and Mitigation Strategy program mandated by the FDA, which includes educating medical personnel about potential side effects of therapies[76]. - The company is subject to extensive regulations by the FDA and EMA, and failure to comply could delay or halt commercialization of its products[118]. - The company has implemented training programs to ensure compliance with various healthcare fraud and abuse laws, which could lead to significant penalties if violated[81]. Competition and Market Challenges - Gilead faces significant competition from large pharmaceutical companies and pricing pressures from insurers and government payers, impacting market share and pricing strategies[30]. - The company’s HIV product sales may be adversely impacted by market share gains by competitive products or changes in treatment paradigms, necessitating careful management of operations and R&D spending[89]. - Legislative actions, such as the Inflation Reduction Act of 2022, may increase payment obligations and limit prices for the company's products, negatively impacting profitability[99]. - The company faces significant competition from global pharmaceutical and biotechnology companies, which may affect pricing and market share[96]. Strategic Initiatives - Gilead's strategic business development focuses on transformative science and building a sustainable portfolio for long-term growth[37]. - The company completed the acquisition of CymaBay Therapeutics for $4.3 billion, enhancing its Liver Disease portfolio with investigational candidate seladelpar[201]. - Gilead's equity compensation plans include 34.7 million common shares available for issuance, with a weighted-average exercise price of $69.85[179]. Employee and Corporate Culture - As of December 31, 2024, Gilead had approximately 17,600 employees[54]. - In 2023, approximately 1,700 people leaders began their development journey, with an additional 3,500 expected in 2024[60]. - Gilead's Total Rewards portfolio includes competitive base salary, incentive compensation, stock awards, and health and wellbeing benefits[61]. - The company is committed to pay equity, conducting annual pay equity reviews to ensure compensation practices are gender- and race-neutral[57]. - The company is focused on creating a culture of inclusion and belonging, supported by its inclusion council and employee resource groups[53]. Risks and Challenges - The company faces challenges in accurately forecasting sales due to difficulties in predicting demand and fluctuations in purchasing patterns, which can lead to product shortages or excess inventory[93]. - The company relies on third-party contract research organizations for clinical trials, outsourcing most of the clinical study activities[31]. - The company faces risks related to reliance on third-party contract research organizations (CROs) for clinical trials, which may lead to delays and increased costs if disputes arise[114]. - Ongoing shortages of certain cancer drugs, such as carboplatin and cisplatin, could impact the company's clinical trials and product manufacturing[115]. - The company is exposed to reimbursement pressures from government agencies and other third parties, which can affect the pricing and sales of its products[78]. Environmental and Social Responsibility - Gilead's corporate responsibility programs reflect its commitment to advancing global health and are overseen by the Corporate Responsibility Committee[62]. - The company is subject to environmental regulations that may increase operating costs, although it does not currently anticipate a material effect on capital expenditures or earnings[83]. - The company's corporate responsibility goals expose it to reputational risks and may impact stock price if not achieved[141]. Cybersecurity and Technology - Cybersecurity incidents are increasing in frequency and sophistication, posing risks to data confidentiality and operational integrity[151]. - The Board of Directors oversees cybersecurity risks, with the Audit Committee receiving quarterly updates from the Chief Information Security Officer (CISO)[168]. - The company engages third-party advisors to enhance its cybersecurity program and manage risks associated with third-party service providers[163]. - The effectiveness of internal controls over financial reporting could be negatively impacted if the ERP system is not implemented successfully[149].

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Gilead Sciences (GILD) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Gilead currently has an average bro ...

Group 1 - Gilead Sciences' share price has increased by over 40% since the last article published in late August of the previous year [1] Group 2 - Allka Research has over two decades of experience in investment, focusing on uncovering undervalued assets in various sectors including ETFs, commodities, technology, and pharmaceuticals [2] - The firm aims to simplify investment strategies for both seasoned and novice investors, fostering a community of informed investors [2]

Core Viewpoint - Gilead Sciences has experienced a significant stock surge, reaching a new 52-week high, driven by robust earnings and positive future guidance, indicating renewed investor interest after years of stagnation [1][4]. Financial Performance - Gilead reported non-GAAP diluted earnings of $1.90 per share for Q4 2024, exceeding consensus estimates by $0.16. Revenues increased by 7% year-over-year to $7.57 billion, surpassing the $7.15 billion consensus estimate, attributed to higher product sales and reduced research expenses [4]. - The product gross margin improved to 79% in Q4 2024, up from 70% the previous year. The company generated $3 billion in operating cash flow and ended the year with $10 billion in cash and cash equivalents [4]. Future Guidance - Gilead provided an optimistic outlook for 2025, projecting earnings per share (EPS) between $7.70 and $8.10, above the consensus estimate of $7.61. Product sales are anticipated to range from $28.2 billion to $28.6 billion, including $1.4 billion from Veklury, its COVID-19 treatment [5]. Product Growth - The company’s HIV product sales grew by 8% year-over-year to $19.6 billion, with Biktarvy sales rising 13% to $13.4 billion and Descovy sales increasing by 6% to $2.1 billion. The Liver Disease portfolio also saw a 9% increase in sales to $3 billion, while Trodelvy sales for breast cancer treatment surged by 24% to $1.3 billion [6]. Breakthrough Developments - Gilead's Lenacapavir drug, which has shown 100% effectiveness in HIV prevention studies, is set to launch in the summer of 2025. The drug has received FDA breakthrough treatment designation to expedite its approval process [7][8]. Stock Performance and Technical Analysis - Gilead's stock has formed a bull flag pattern, indicating potential for further price increases. The stock recently broke out above $96.28 following the Q4 earnings beat, reaching a 52-week high of $106.69 [9][10]. The consensus price target is $101.33, with a high forecast of $125.00 [10].

Group 1 - Gilead Sciences (GILD) has gained approximately 16.5% year-to-date, outperforming the average gain of 5.6% in the Medical sector [4] - Gilead Sciences holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for GILD's full-year earnings has increased by 7.7% over the past quarter, reflecting improved analyst sentiment [3] Group 2 - Gilead Sciences is part of the Medical - Biomedical and Genetics industry, which includes 510 stocks and is currently ranked 67 in the Zacks Industry Rank [5] - Stocks in the Medical - Biomedical and Genetics industry have gained about 5.8% year-to-date, indicating GILD's strong performance relative to its peers [5] - Another outperforming stock in the Medical sector is Natera (NTRA), which has increased by 9% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][5]

Core Viewpoint - Gilead Sciences, Inc. reported strong fourth-quarter results, exceeding expectations in both earnings and revenue, driven by robust product sales, particularly in HIV, oncology, and liver disease treatments [1][2]. Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were $1.90, surpassing the Zacks Consensus Estimate of $1.67 and up from $1.72 in the same quarter last year [1]. - Total revenues reached $7.6 billion, exceeding the Zacks Consensus Estimate of $7.1 billion, marking a 6% year-over-year increase [2]. Product Sales and Guidance - The increase in revenues was primarily attributed to higher sales in HIV, oncology, and liver disease drugs [2]. - Gilead's guidance for product sales is projected between $28.2 billion and $28.6 billion, with adjusted EPS anticipated in the range of $7.70-$8.10 [2]. Market Position and Growth Drivers - Gilead holds a market-leading position in HIV treatments, with over 50% market share in the U.S. for its flagship therapy, Biktarvy [4]. - The company’s HIV franchise has shown consistent growth over the past three years, contributing significantly to revenue [4]. Innovation and Pipeline - Gilead's pipeline includes lenacapavir, which has shown 100% efficacy for HIV prevention in cisgender women, and is under review for approval by the FDA and EMA [5][6]. - The approval of seladelpar for primary biliary cholangitis (PBC) strengthens Gilead's liver disease portfolio, following its acquisition of CymaBay Therapeutics for $4.3 billion [7][8]. Strategic Partnerships - Gilead has formed strategic partnerships, including one with LEO Pharma to enhance its inflammation research portfolio [10]. - Collaborations with Merck to evaluate investigational combinations for HIV treatment are ongoing, showing promising results [20]. Stock Performance and Valuation - Gilead's shares have increased by 51.3% over the past year, outperforming the industry and the S&P 500 [16]. - The current price/earnings ratio is 13.27x forward earnings, lower than the large-cap pharma industry's average of 16.39x [16]. Dividend and Financial Health - The company announced a 2.6% increase in its quarterly cash dividend, effective in Q1 2025, resulting in a quarterly dividend of 79 cents per share [21]. - Gilead's strong cash position, with $10 billion in cash and equivalents as of December 31, 2024, supports its current yield of 2.96% [22].

Company Performance - Gilead Sciences (GILD) shares have increased by 13.3% over the past month, reaching a new 52-week high of $106.69 [1] - Year-to-date, Gilead has gained 12.7%, outperforming the Zacks Medical sector's 4.4% and the Zacks Medical - Biomedical and Genetics industry's 12.6% [1] Earnings and Revenue Expectations - Gilead has consistently exceeded earnings consensus estimates, reporting EPS of $1.9 against a consensus of $1.67 in its last earnings report [2] - For the current fiscal year, Gilead is projected to achieve earnings of $7.80 per share on revenues of $28.41 billion, reflecting a 68.83% increase in EPS but a slight revenue decline of -1.18% [3] - The next fiscal year forecasts earnings of $8.12 per share on $29.58 billion in revenues, indicating year-over-year changes of 4.14% in EPS and 4.11% in revenues [3] Valuation Metrics - Gilead's current valuation metrics show a trading multiple of 13.3X current fiscal year EPS estimates, below the peer industry average of 22.6X [7] - The stock trades at 12X trailing cash flow compared to the peer group's average of 16X, with a PEG ratio of 0.89 [7] Zacks Rank and Style Scores - Gilead holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts, indicating potential for further gains [8] - The company has a Value Score of A, Growth Score of B, and Momentum Score of D, resulting in a combined VGM Score of A [6] Industry Comparison - Gilead's performance is strong relative to its industry, with ANI Pharmaceuticals, Inc. (ANIP) also showing positive metrics, including a Zacks Rank of 2 (Buy) and a Value Score of A [9] - The Medical - Biomedical and Genetics industry is positioned in the top 28% of all industries, suggesting favorable conditions for both Gilead and ANIP [11]

Company Overview - Gilead Sciences is a pioneer in developing drugs for the treatment of human immunodeficiency virus (HIV) and has a broad portfolio that includes drugs for liver diseases, hematology/oncology diseases, and inflammation/respiratory diseases [12] - The company's flagship treatment, Biktarvy, is driving growth within its strong HIV franchise, which generated total sales of $18.2 billion in 2023, reflecting a 6% year-over-year increase [12] Investment Potential - Gilead Sciences holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating solid performance metrics [13] - The company has a Momentum Style Score of A, with shares appreciating by 11.8% over the past four weeks [13] - Six analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.09 to $7.64 per share, and Gilead boasts an average earnings surprise of 19.5% [13] Conclusion - With a strong Zacks Rank and top-tier Momentum and VGM Style Scores, Gilead Sciences is positioned as a noteworthy option for investors [14]