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Examining Gilead Sciences’ 1Q17 Performance



A look at Gilead Sciences

Gilead Sciences (GILD) is a biopharmaceutical company. Its portfolio includes various drugs for key therapeutic areas such as HIV/AIDS, liver diseases, oncology, cardiovascular, inflammation, and respiratory.

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Stock price performance

Gilead’s stock price fell ~12.6% in 1Q17. On April 6, 2017, its stock price had fallen 7.2% year-to-date (or YTD).

Analysts’ recommendations

Wall Street analysts estimate that the stock has the potential to return ~18.9% over the next 12 months. Analysts’ recommendations show a 12-month target price of $79.06 per share compared to the stock’s price of $66.47 per share on April 5, 2017.

There are 28 analysts tracking Gilead Sciences stock, and 53.6% recommend “buys,” while 46.4% recommend “holds.” The consensus rating for Gilead Sciences is 2.3, which represents a “buy” for long-term growth investors.

Analysts’ revenue estimates

Gilead’s revenue has mainly been driven by the strong performances of Genvoya, Descovy, Odefsey, Stribild, and Epclusa, and it’s been offset by the lower sales of key products such as Harvoni and Sovaldi.

Analysts’ estimates show revenue of $6.6 billion, a ~15% fall in revenue compared to 1Q16, and earnings per share (or EPS) of $2.28 for the company in 1Q17.

To divest company-specific risk, investors can consider ETFs such as the iShares Global Healthcare ETF (IXJ), which holds 2.1% of its total assets in Gilead Sciences, 1.8% in AstraZeneca (AZN), 3.1% in Amgen (AMGN), 4.4% in Merck & Co. (MRK), and 7.7% in Johnson & Johnson (JNJ).


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