From Nasdaq: 2024-05-09 22:35:13

Gilead Sciences stock is currently trading at $65 per share, 11% below December 2021 levels. Despite a 37% gain for the S&P 500, GILD stock has struggled due to declining sales of its Covid-19 treatment. Returns have been volatile, underperforming the index in 2021 and 2023.

Looking at the longer term, GILD stock has seen minimal growth, moving from $60 in early 2021 to $65 now, compared to a 40% increase for the S&P 500. The High Quality Portfolio has consistently outperformed the S&P 500, providing better returns with less risk.

In the current macroeconomic environment, with high oil prices and rising interest rates, GILD could face challenges similar to 2021 and 2023. However, potential for a 12% gain to reach $74, along with trading at 3x trailing revenues, suggests room for growth.

Gilead Sciences’ revenue increased to $27.1 billion in 2023, driven by the Veklury Covid-19 treatment and growth in HIV and oncology products. With reduced total debt and stable cash flows, Gilead is well-positioned to manage its obligations amid the ongoing inflation shock.

Despite potential challenges, GILD stock has the potential for further gains as market sentiments improve. Revenues are expected to stabilize around $27.6 billion in 2024, with adjusted earnings in the range of $3.45 to $3.85 per share. Peers in the industry have seen mixed performance over the past month and year.



Read more at Nasdaq: Will Gilead Sciences Stock Recover To Its Pre-Inflation Shock Highs of Around $75?