Core Insights - Gilead Sciences, Inc. (GILD) has experienced a positive shift in investor sentiment due to new drug approvals, encouraging pipeline developments, and strong quarterly results, leading to an increase in annual sales and earnings guidance driven by COVID-19 treatment Veklury sales [1] Group 1: HIV Franchise Performance - Gilead's leading HIV franchise continues to show momentum, with a market share exceeding 49% in the U.S. as of Q3, primarily driven by its flagship therapy, Biktarvy [5] - The company anticipates filing for approval of lenacapavir for HIV prevention by year-end, which could enhance its HIV franchise as it requires administration only twice a year compared to daily oral pills [3][15] - Gilead has raised its HIV sales target for 2024 to 5% from an earlier estimate of 4% due to strong performance in its HIV portfolio [5] Group 2: Drug Approvals and Acquisitions - Gilead's portfolio has been strengthened by the approval of additional drugs, including Livdelzi for liver disease, and the acquisition of CymaBay Therapeutics for $4.3 billion, which adds Seladelpar to its pipeline [6] - The FDA has granted accelerated approval for seladelpar for treating primary biliary cholangitis (PBC), with a final decision from the European Medicines Agency expected in Q1 2025 [16][17] Group 3: Oncology Challenges - Gilead's oncology franchise faces challenges, particularly with the breast cancer drug Trodelvy, which has seen setbacks in expanding its label due to failed late-stage studies [8][26] - Despite these challenges, Trodelvy has received Breakthrough Therapy Designation for treating extensive-stage small cell lung cancer [19] Group 4: Financial Performance and Estimates - Gilead's shares have increased by 15.4% over the past year, outperforming the industry, which has declined by 10.8% [4] - The Zacks Consensus Estimate for Gilead's 2024 earnings per share (EPS) has risen by 59 cents to $4.36, reflecting a positive trend despite acquisition-related expenses [21] - Gilead's current dividend yield of 3.38% is supported by a strong cash position of $5 billion as of September 30, 2024, indicating sustainability [12] Group 5: Strategic Collaborations - Gilead has entered a multi-target research collaboration with Terray Therapeutics to develop novel small-molecule therapies [7] - The company is also collaborating with Merck to evaluate a combination treatment of islatravir and lenacapavir for HIV, which has shown promising results in maintaining viral suppression [11]

Economic Outlook - The Federal Reserve is anticipated to implement its third consecutive rate cut in 2024, reducing the benchmark policy rate by 0.25% to a range of 4.25%-4.50%, marking a total drop of one percentage point since September [1] - The future of additional rate cuts is uncertain due to inflation exceeding the Fed's 2% target and stronger-than-expected economic growth complicating the central bank's decisions [1][2] Investment Strategy - In the current uncertain economic environment, value investing is highlighted as a strategic advantage, focusing on stocks trading below their intrinsic value for potential long-term gains [3] - The earnings yield metric is suggested as a useful tool for identifying attractively valued stocks, calculated as annual earnings per share divided by market price, with higher earnings yield indicating undervaluation [4][5] Stock Selection Criteria - A primary screening criterion for stock selection is an earnings yield greater than 10%, supplemented by estimated EPS growth for the next 12 months being greater than or equal to the S&P 500 [8] - Additional criteria include an average daily trading volume of at least 100,000 and a current price of $5 or more [9][10] Value Stock Recommendations - Pitney Bowes (PBI) is projected to have a 176% year-over-year earnings growth for 2025, with a Zacks Rank 1 and a Value Score of A [12] - Gulfport Energy Corporation (GPOR) is expected to see a 46% growth in 2025 earnings, also holding a Zacks Rank 1 and a Value Score of B [13] - Kingstone Companies, Inc. (KINS) anticipates an 11% growth in 2025 earnings, with a Zacks Rank 1 and a Value Score of B [14] - NCR Atleos Corporation (NATL) is projected to achieve a 15% growth in 2025 earnings, maintaining a Zacks Rank 1 and a Value Score of A [15] - Gilead Sciences (GILD) expects a 73% growth in 2025 earnings, currently holding a Zacks Rank 2 and a Value Score of B [16]

Core Insights - The article emphasizes the importance of disciplined risk management in investment strategies, advocating for a barbell approach that allocates 90% to safe assets and 10% to high-growth opportunities [1] DCF Model Assumptions - The valuation model assumes free cash flow will grow at a constant annual rate over the next eight years, with projected cash flows discounted back to present value using a fixed discount rate derived from the Capital Asset Pricing Model (CAPM) [1] - A terminal value is calculated by projecting free cash flow into the ninth year, assuming continued growth at the same rate, and applying a perpetual growth rate using the Gordon Growth Model [1] - Key assumptions include constant growth and discount rates, the discount rate exceeding the perpetual growth rate to ensure a finite terminal value, and accurate free cash flow projections reflecting future performance [1]

Core Viewpoint - Gilead Sciences, Inc. has received a positive recommendation from the CHMP for the approval of seladelpar for treating primary biliary cholangitis (PBC), which could significantly enhance its treatment portfolio in the EU [1][4]. Group 1: Drug Approval and Clinical Data - The CHMP recommended seladelpar for PBC treatment in combination with UDCA for adults with inadequate response to UDCA or as monotherapy for those intolerant to UDCA [1]. - The positive recommendation is based on the RESPONSE Study, which showed ALP normalization in 25% of participants at 12 months and a statistically significant reduction in pruritus compared to placebo [4]. - Seladelpar has been granted Priority Medicine designation in the EU, indicating its potential to address unmet medical needs [5]. Group 2: Market Impact and Financial Performance - Gilead's shares have increased by 14.3% year to date, contrasting with an 11.4% decline in the industry [3]. - The approval of seladelpar, branded as Livdelzi, strengthens Gilead's liver disease portfolio, which was bolstered by the acquisition of CymaBay Therapeutics for $4.3 billion [8]. Group 3: Strategic Initiatives and Collaborations - Gilead is actively seeking to enhance its pipeline through strategic acquisitions and collaborations, including a recent agreement with Tubulis for developing an antibody-drug conjugate [10][11]. - The company has also partnered with Merus to leverage its Triclonics platform for developing trispecific antibodies targeting tumor-associated antigens [12]. - Gilead's ongoing efforts to approve new drugs, including lenacapavir for HIV prevention, are expected to strengthen its market position amid increasing competition [14].

Gilead Sciences (GILD) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a c ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional val ...

Gilead Sciences, Inc. (NASDAQ:GILD) Annual Evercore ISI HealthCONx Healthcare Conference December 4, 2024 11:40 AM ET Company Participants Andrew Dickinson - Chief Financial Officer Conference Call Participants Umer Raffat - Evercore Umer Raffat Excellent. Well, thank you guys for joining us. Really excited to have Gilead management again in Miami. I think the conference is not complete without you being here, Andy. So, thank you for being here. Andrew Dickinson I'm thrilled to be here again. Thank you. Ume ...

Gilead Sciences, Inc. (NASDAQ:GILD) Piper Sandler 36th Annual Healthcare Conference December 3, 2024 11:00 AM ET Company Participants Andy Dickinson - Chief Financial Officer Conference Call Participants Joe Catanzaro - Piper Sandler Joe Catanzaro Great. So thanks everybody for joining us here day one Annual Piper Sandler Healthcare Conference. I'm Joe Catanzaro, one of the biotech analysts here at Piper. It's my pleasure to welcome Gilead and their CFO, Andy Dickinson. Andy, thanks so much for joining us. ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Gilead Sciences (GILD) .Gilead currently has an average brokerage recommen ...

Biotech giant Gilead Sciences, Inc.’s (GILD) shares have risen 44.2% in the past six months compared with the industry’s growth of 1.1%. The stock has also outperformed the sector and the S&P 500. It has grown steadily in the past six months.Earlier this month, Gilead reported better-than-expected third-quarter results and raised its annual earnings guidance yet again. Revenues increased 7% from the year-ago quarter’s level due to high HIV and Veklury sales.Approval of new drugs and encouraging pipeline pro ...