Should You Buy Gilead Sciences Before Feb. 10?

Core Viewpoint - Gilead Sciences has shown strong performance, with a 52% increase in stock price over the past year, and is set to report fourth-quarter earnings on February 10, which could influence investor decisions [1] Group 1: Financial Performance - Gilead's total revenue for the third quarter increased by 3% year over year to $7.8 billion, with a 4% increase excluding its coronavirus therapy Veklury [1] - Biktarvy, a key HIV drug, saw a revenue increase of 6% year over year [1] - For fiscal year 2025, Gilead expects product sales to be $28.6 billion at the midpoint, remaining flat compared to 2024 [2] Group 2: Growth Drivers - Yeztugo, a newly approved HIV medicine, could significantly contribute to Gilead's financial results if uptake exceeds expectations, with analysts predicting peak sales of $4.5 billion for the drug [3][4] - Gilead has a vast pipeline with many cancer programs and other HIV candidates, which could lead to improved sales growth in the coming years as the impact of Veklury diminishes [5] Group 3: Market Position and Valuation - Gilead has faced challenges in diversifying beyond its core therapeutic area, particularly in oncology, where sales have been declining [4] - The company's shares are currently trading at 16.6 times forward earnings, which is lower than the healthcare sector average of 18.7 [5]