1 Stock Under $65 That You Shouldn't Ignore

NASDAQ: GILD | Gilead Sciences Inc. News, Ratings, and Charts

GILD – Leading biopharmaceutical company Gilead Sciences (GILD) reported impressive sales in the last quarter and raised its full-year 2022 guidance. Furthermore, the company’s strategic acquisitions, drug approvals, and research breakthroughs should drive its growth in the coming quarters. Given GILD’s discounted valuation, we think it could be wise to buy this stock at the current attractive price level. Read on….

With a $79.93 billion market cap, Gilead Sciences, Inc. (GILD) operates as a biopharmaceutical company that discovers, develops, and commercializes medicines for unmet medical needs in the United States, Europe, and internationally.

The company reported strong financials in the fiscal 2022 second quarter with solid commercial and clinical execution. During the quarter, its total product sales, excluding Veklury, improved 7% year-over-year to $5.70 billion, primarily due to growth in the HIV, Cell Therapy, and Trodelvy® businesses.

On September 21, 2022, GILD completed the acquisition of MicroBio, a privately held U.K.-based biotechnology company focused on restoring immune balance with agonists targeting immune inhibitory receptors. With this acquisition, the company will access MicroBio’s proprietary discovery platform and complete a portfolio of immune inhibitory receptor agnostics.

Earlier this month, GILD’s company, Kite, announced that the European Commission (EC) approved CAR T-cell therapy Tecartus® for treating relapsed or refractory acute lymphoblastic leukemia. This approval marks Kite’s fourth indication in Europe for its two cell therapies and first in Leukemia.

Furthermore, last month, GILD announced the first global regulatory approval of Sunlenca® (lenacapavir) injection and tablets for treating HIV infection. The European Commission granted marketing authorization for Sunlenca, which will help to address the critical unmet clinical need for people with multi-drug-resistant HIV who have limited treatment choices.

The stock has gained 6.3% over the past six months to close the last trading session at $63.77.

Here is what could influence GILD’s performance in the upcoming months:

Robust Financials

For the fiscal 2022 second quarter ended June 30, 2022, GILD’s total product sales, excluding Veklury, increased 7% year-over-year to $5.69 billion. The company’s HIV product sales increased 7% from its year-ago value to $4.23 billion. The company’s oncology sales increased 71% from the prior-year quarter to $527 million.

Improved Guidance

GILD raised its full-year guidance. The company now expects total product sales between $24.50 billion and $25 billion, compared to its previously forecasted sales of $23.80 billion to $24.30 billion. Its total product sales, excluding Veklury, are expected to come between 22 billion and 22.50 billion, compared to the previous forecasted $21.80 billion and $22.30 billion.

In addition, GILD expects total Veklury sales of approximately $2.50 billion, up from prior guidance of $2 billion. The company expects non-GAAP earnings per share between $6.35 and $6.75, compared to its previous guidance of $6.20 to $6.70.

Attractive Valuation

In terms of forward non-GAAP P/E, GILD is currently trading at 9.62x, 47.2% lower than the industry average of 18.24x. The stock’s forward EV/EBITDA of 7.50x is 43.1% lower than the industry average of 13.18x. Likewise, its forward EV/EBIT of 8.68x is 47.4% lower than the industry average of 16.49x.

Furthermore, the stock’s forward Price/Sales of 3.17x is 26.5% lower than the industry average of 4.32x. Also, its forward Price/Cash Flow multiple of 8.11 is 49.2% lower than the industry average of 15.95.

High Profitability

GILD’s trailing-12-months gross profit margin of 79.50% is 46.4% higher than the industry average of 54.31%. The stock’s trailing-12-month EBIT margin of 40.36% compares to the industry average of 0.18%. In addition, its trailing-12-month EBITDA margin of 48.02% is 1,143% higher than the 3.86% industry average.

Also, the stock’s ROCE, ROTC, and ROTA of 20.72%, 14.41%, and 6.58% compare to the negative industry averages of 38.46%, 21.31%, and 29.59%. Its trailing-12-month asset turnover ratio of 0.42% is 22.8% higher than the 0.34% industry average.

POWR Ratings Show Promise

GILD’s overall B rating equates to a Buy in our POWR Ratings system. The POWR Ratings are calculated by accounting for 118 distinct factors, with each factor weighted to an optimal degree. 

Our proprietary rating system also evaluates each stock based on eight distinct categories. The stock has a grade of A for Value, consistent with its lower-than-industry valuation metrics. In addition, it has a B grade for Quality, in sync with its higher-than-industry profitability metrics.

GILD is ranked #10 out of 396 stocks in the Biotech industry.

Beyond what I have stated above, we have also given GILD grades for Sentiment, Growth, Momentum, and Stability. Get access to all GILD ratings here.

Bottom Line

GILD reported impressive second-quarter results and affirmed strong performance for the full-year 2022. Moreover, the company is well-positioned to benefit from its diversified product portfolio.

Given GILD’s strong financials, solid growth prospects, high profitability, and discounted valuations, we think it could be wise to add this stock to your portfolio.

How Does Gilead Sciences, Inc. (GILD) Stack Up Against its Peers?

GILD has an overall POWR Rating of B. One could also check out these other stocks within the Biotech industry with an A (Strong Buy) rating: Vertex Pharmaceuticals Inc. (VRTX), Biogen Inc. (BIIB), and Incyte Corporation (INCY).


GILD shares were trading at $63.41 per share on Friday morning, down $0.36 (-0.56%). Year-to-date, GILD has declined -9.44%, versus a -21.25% rise in the benchmark S&P 500 index during the same period.


About the Author: Mangeet Kaur Bouns


Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
GILDGet RatingGet RatingGet Rating
VRTXGet RatingGet RatingGet Rating
BIIBGet RatingGet RatingGet Rating
INCYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investor Alert: Healthy Pause for Stock Market

This recent pullback very much looks like a “healthy pause” for the stock market as the S&P 500 (SPY) comes off recent highs. What is the cause of the pause? How long will it last? What happens afterwards? And how to make money in this market? Steve Reitmeister will answer all these questions and more in his latest market commentary below...

3 Gold Stocks to Buy Poised for Success

With expected interest rate cuts, surging gold jewelry demand, and ongoing geopolitical conflicts, gold prices have hit record highs this year. Thus, it could be wise to buy fundamentally sound gold stocks Centerra Gold (CGAU), Gold Fields (GFI), and Kinross Gold (KGC), which are well-poised for success. Keep reading…

3 Internet Stocks Poised up for Rapid Growth in April

The internet industry thrives thanks to expanding usage, its transformative impact on work and communication globally, advancements in 5G, and its widespread integration into daily life. Hence, it could be wise to consider adding internet stocks ATRenew (RERE), Chegg (CHGG), and 1-800-FLOWERS.COM (FLWS) to one’s portfolio for growth. Read on...

TXN vs. INTC Earnings Alert - Which Chip Stock Will Surge Ahead?

Growing applications of chips across diverse end-use sectors and emerging digital technologies will shape the growth trajectory of the semiconductor industry and create several opportunities for industry players. So, let’s analyze Texas Instruments (TXN) and Intel (INTC) to determine which of these chip stocks will surge following their first-quarter earnings. Read more...

Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

Read More Stories

More Gilead Sciences Inc. (GILD) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All GILD News