Why Gilead Sciences Stock Just Popped
Key Takeaways
Gilead stock is flashing "buy" in bright green letters.
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3 min read
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investment
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July 25, 2025
01:37 PM
The Motley Fool
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Gilead stock is flashing "buy" in bright green letters
Additionally, Biopharmaceuticals stock Gilead Sciences (GILD 2. 69%) jumped 2 (which is quite significant)
Moreover, 5% through 12:30 p
ET Friday after Needham & Co, given current economic conditions
On the other hand, Upgraded the s to a buy rating and slapped a $133 price target on the $116 stock
Key to the analyst's analysis is Gilead's new Yeztugo prescription medication for pre-exposure prevention of HIV-1, in this volatile climate
However, In contrast, Image source: Getty Images
What Needham says Gilead Citing a survey of physicians, Needham reports in a note covered on The Fly this morning that the market for "pre-exposure phylaxis" against HIV is ly to increase 49% in size over the next five years
Within this market, physicians on average expect Yeztugo to grab a 38% market
But here's the thing: Most analyst forecasts do not factor into their Gilead valuations Yeztugo's gains in the growing HIV phylaxis market
Additionally, And with Needham believing Yeztugo will become a "a multi-billion dollar contributor to sales growth over the next several years," the analyst feels investors should buy Gilead stock now, before more analysts catch on to the opportunity (an important development) (this bears monitoring)
Is Gilead stock a sell
In contrast, Just how big of an opportunity is this
However, Well, consider Gilead as it stands today
Furthermore, Valued just over $141 billion, Gilead stock sells for just 23, in light of current trends. 5 times trailing earnings (i (this bears monitoring)
Without growth from Yeztugo)
Most analysts expect Gilead to grow fits nearly 23% annually over the next five years, and the company also pays a respectable 2
However, 8% dividend yield
I'd argue that already makes Gilead stock a good stock spect for growth at a reasonable price, in this volatile climate
But Gilead also generates substantially more free cash flow than it reports as net income -- $9 (noteworthy indeed)
On the other hand, At the same time, 8 billion over the last 12 months -- which drops its price-to-free-cash-flow ratio down well below 15 (something worth watching)
Without Yeztugo, that's already a great price
With growth from Yeztugo, Gilead stock could be a steal, given current economic conditions
The evidence shows Author Rich Smith is a contributing Defense Analyst at The Motley Fool, covering publicly traded and emerging in defense, space, and aerospace
Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D
Furthermore, He holds a B (remarkable data)
Nevertheless, In International Relations from the College of William & Mary in Virginia, a J
From the University of Baltimore, and language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation
Additionally, Fun fact: Canada's The Globe and Mail him in an article titled, "Ex-lawyer one of the best stock pickers since 2009, in today's market environment. " TMFDitty X @RichSmithFool Rich Smith has no position in any of the stocks mentioned
On the other hand, The Motley Fool has positions in and recommends Gilead Sciences (quite telling)
The Motley Fool has a disclosure policy (noteworthy indeed).
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