Gilead Sciences, Inc.

(NASDAQ Global Select)
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Neutral +3

Jim Cramer on Gilead Sciences: “I’d Hold On to It” - Yahoo Finance

AI-generated analysis

📉 Gilead Sciences (GILD) closed at $130.40, dropping 2.42% and underperforming major indices like the S&P 500 and Nasdaq.

💊 As an HIV and hepatitis C drugmaker, the company shares have declined 2.37% over the past month while the medical sector fell slightly less.

📅 Investors are awaiting Gilead's upcoming earnings disclosure scheduled for May 7, 2026, to gauge its performance.

💰 Analysts expect quarterly EPS of $1.89 (up 4.42%) and revenue of $6.89 billion (up 3.41%) compared to the prior year period.

📈 Full-year forecasts predict Gilead earnings of $8.63 per share and revenue of $30.15 billion, both showing modest growth over last year.

📊 Recent analyst estimates have revised downwards by 0.32% in the past month, resulting in a Zacks Rank of #3 (Hold).

💵 Gilead trades at a Forward P/E ratio of 15.48, which is significantly lower than its industry average of 21.28.

📉 The company's PEG ratio stands at 1.76, slightly higher than the industry average of 1.49, reflecting its earnings growth trajectory.

🏆 Gilead belongs to a Zacks Industry Rank #96 within the Medical - Biomedical and Genetics sector, placing it in the top 40% of all industries.

💡 The article suggests that Zacks research models have historically shown strong outperformance for stocks with specific industry ranks and estimate revisions.

Bullish Signals
  • Analysts anticipate Gilead Sciences will report an earnings per share (EPS) of $1.89, representing a 4.42% rise compared to the same quarter of the previous year.
  • The consensus estimate projects quarterly revenue of $6.89 billion, which is up 3.41% from the year-ago period.
  • Full-year Zacks Consensus Estimates forecast earnings of $8.63 per share and revenue of $30.15 billion, indicating positive growth changes of +5.89% and +2.39% respectively compared to the previous year.
  • Gilead Sciences currently trades at a Forward P/E ratio of 15.48, marking a discount compared to its industry average Forward P/E of 21.28.
  • The Medical - Biomedical and Genetics industry ranks 96th out of 250 industries, placing it within the top 40% according to the Zacks Industry Rank.
Risk Factors
  • The stock closed down 2.42% on the day, underperforming the S&P 500 which gained 0.8%, signaling weak near-term momentum.
  • Shares of Gilead Sciences witnessed a loss of 2.37% over the previous month, trailing both the Medical sector's slight decline and the S&P 500's significant gain of 8.11%.
  • The Zacks Rank is currently #3 (Hold), indicating neutral sentiment that lacks the strong buy status often associated with outperformance.
  • Consensus EPS estimates have fallen by 0.32% over the past month, suggesting a deteriorating near-term business outlook.
  • The company's PEG ratio of 1.76 is higher than the industry average of 1.49, implying that current earnings growth may not adequately justify the valuation.
  • Forward P/E ratio stands at 15.48, which while a discount to the industry average, does not fully compensate for the recent price weakness and lack of analyst optimism.
Full Analysis
Jim Cramer advises investors to hold onto Gilead Sciences (GILD), noting that the HIV and hepatitis C drugmaker recently traded down 2.42% at $130.40, underperforming the broader S&P 500 which gained 0.8%. The stock has also lagged over the past month with a 2.37% decline, though analysts are preparing for an upcoming earnings release scheduled for May 7, 2026. Market expectations for that quarter anticipate earnings per share of $1.89, representing a 4.42% year-over-year increase, alongside projected revenue of $6.89 billion, up 3.41% from the prior year period. For the full year, consensus estimates forecast annual earnings of $8.63 per share and total revenue of $30.15 billion, with both figures showing double-digit percentage growth compared to the previous year's levels. Recent analyst activity suggests a slight downward pressure on the immediate outlook, with the Zacks Consensus EPS estimate falling 0.32% in the past month, though the overall Zacks Rank remains at #3, which corresponds to a "Hold" recommendation. Valuation metrics indicate that Gilead Sciences is currently trading at a Forward P/E ratio of 15.48, which is notably lower than the industry average of 21.28, suggesting the stock may be undervalued relative to peers in its sector. Additionally, the company's Price-to-Earnings Growth (PEG) ratio sits at 1.76, compared to an industry average of 1.49, and the broader medical and genetics industry maintains a Zacks Industry Rank of 96, placing it within the top 40% of performance among similar industries tracked.