Gilead Sciences (GILD) is a Top-Ranked Value Stock: Should You Buy?

Zacks
12 Feb

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Gilead Sciences (GILD)

Headquartered in Foster City, CA, Gilead Sciences is a pioneer in developing drugs for the treatment of human immunodeficiency virus (HIV). The company’s broad portfolio includes drugs for liver diseases, hematology/oncology diseases and inflammation/respiratory diseases. Gilead has a strong HIV franchise with flagship treatment Biktarvy driving the growth. The company’s efforts to develop innovative HIV treatments for prevention are impressive as well. Total sales from the HIV franchise came in at $18.2 billion in 2023, up 6% year over year, driven by strong growth in lead HIV treatment Biktarvy.

GILD sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Medical - Biomedical and Genetics industry's P/E of 22.5X, shares of Gilead Sciences are trading at a forward P/E of 12.7X. GILD also has a PEG Ratio of 1.3, a Price/Cash Flow ratio of 10.8X, and a Price/Sales ratio of 4.2X.

Many value investors pay close attention to a company's earnings as well. For GILD, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $7.59 per share for 2025. Per share GILD boasts an average earnings surprise of 19.5%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding GILD to their portfolios.

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Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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