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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
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and 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 were $19.6 billion in 2024, up 8% year over year, driven by strong growth in lead HIV treatment Biktarvy.
GILD boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Gilead Sciences are trading at a forward earnings multiple of 13.3X, as well as a PEG Ratio of 0.7, a Price/Cash Flow ratio of 15.2X, and a Price/Sales ratio of 4.5X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.06 to $7.86 per share. GILD has an average earnings surprise of 19.5%.
Investors should take the time to consider GILD for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).