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GILD Stock Trading Close to Its 52-Week High: Should You Buy or Sell?
GILDGilead(GILD) ZACKS·2025-03-17 20:00

Core Viewpoint - Gilead Sciences, Inc. (GILD) has shown strong stock performance, hitting a 52-week high and outperforming its industry and the S&P 500, driven by positive data and pipeline advancements [1][3]. Group 1: Stock Performance - GILD's stock reached a 52-week high of 119.96onMarch10andiscurrentlytradingat119.96 on March 10 and is currently trading at 111.44 [1]. - The stock has gained 5.5% in the past month, while the industry grew by only 1.2% [1]. Group 2: HIV Franchise - Gilead maintains a leading portfolio in HIV treatments, with over 50% market share in the U.S. as of Q4 [4]. - The flagship HIV therapy, Biktarvy, continues to drive sales growth [4]. - Descovy for PrEP has over 40% market share in the U.S. [5]. - The pipeline candidate lenacapavir shows 100% efficacy for HIV prevention in cisgender women, with potential for twice-yearly administration [5][6]. Group 3: New Drug Approvals - The FDA granted accelerated approval to seladelpar for primary biliary cholangitis (PBC), enhancing Gilead's liver disease portfolio [9][10]. - Gilead's acquisition of CymaBay Therapeutics for 4.3billionaddsseladelpartoitspipeline[10].Group4:StrategicPartnerships−GileadformedastrategicpartnershipwithLEOPharmatoenhanceitsinflammationresearchportfolio[11].−AcollaborationwithTerrayTherapeuticsaimstodevelopnovelsmall−moleculetherapies[11].Group5:OncologyPortfolio−ThebreastcancerdrugTrodelvyhasperformedwell,receivingBreakthroughTherapyDesignationforsmallcelllungcancer[12].−However,setbacksoccurredwithlate−stagestudiesforTrodelvyinurothelialcancerandnon−smallcelllungcancer[13].Group6:CellTherapyChallenges−Gilead′sCellTherapyfranchise,includingYescartaandTecartus,facescompetitivepressuresexpectedtocontinueinto2025[14].Group7:FinancialOutlook−GILD′ssharestradeataprice/earningsratioof14.01xforwardearnings,lowerthantheindustryaverageof16.60x[15].−Earningsestimatesfor2025and2026haveincreased,indicatingpositiverevisions[16].−Thecompanyhasastrongcashpositionof4.3 billion adds seladelpar to its pipeline [10]. Group 4: Strategic Partnerships - Gilead formed a strategic partnership with LEO Pharma to enhance its inflammation research portfolio [11]. - A collaboration with Terray Therapeutics aims to develop novel small-molecule therapies [11]. Group 5: Oncology Portfolio - The breast cancer drug Trodelvy has performed well, receiving Breakthrough Therapy Designation for small cell lung cancer [12]. - However, setbacks occurred with late-stage studies for Trodelvy in urothelial cancer and non-small cell lung cancer [13]. Group 6: Cell Therapy Challenges - Gilead's Cell Therapy franchise, including Yescarta and Tecartus, faces competitive pressures expected to continue into 2025 [14]. Group 7: Financial Outlook - GILD's shares trade at a price/earnings ratio of 14.01x forward earnings, lower than the industry average of 16.60x [15]. - Earnings estimates for 2025 and 2026 have increased, indicating positive revisions [16]. - The company has a strong cash position of 10 billion as of December 31, 2024, supporting a sustainable dividend yield of 2.84% [20].