A look at Gilead Sciences
Headquartered in Foster City, California, Gilead Sciences (GILD) is a biopharmaceutical company. Its portfolio includes cardiovascular drugs, drugs for liver diseases, HIV (human immunodeficiency virus) drugs, oncology drugs, inflammation drugs, and respiratory drugs.
The above chart shows the comparison of GILD’s revenues and EPS (earnings per share) over the last eight quarters and estimates for 3Q17.
Gilead Sciences stock has risen ~15.2% in 3Q17 and 13.9% year-to-date as of October 20, 2017.
Wall Street analysts estimate that GILD stock has the potential to return ~4.1% over the next 12 months. Their recommendations show a 12-month target price of $84.95 per share compared to $81.59 per share as of October 19, 2017.
There are 27 analysts tracking GILD stock. Fourteen of them are recommending a “buy,” and 13 are recommending a “hold.” The consensus rating is 2.37, which represents a “moderate buy” for long-term growth investors as well as value investors.
Analysts’ revenue estimates
GILD’s revenues have been largely impacted by lower sales of Harvoni and Sovaldi. That was partially offset by an increase in sales of Descovy, Genvoya, Odefsey, Stribild, and Epclusa.
Wall Street analysts estimate revenues of $6.3 billion in 3Q17, a 15.4% fall compared to 3Q16, and EPS of $2.12.
To divest the company-specific risks, investors can consider investing in ETFs such as the iShares Nasdaq Biotechnology (IBB), which holds 8.9% of its total assets in Gilead Sciences. IBB also holds 7.9% in Amgen (AMGN), 3.4% in Incyte (INCY), and 2.4% in Mylan (MYL).