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Follow the Leader: 2 Biopharma Stocks Showing Relative Strength in 2025
GILDGilead(GILD) ZACKS·2025-03-13 17:12

Industry Overview - The Zacks Medical – Biomedical and Genetics industry group ranks in the top 26% out of over 250 industries, indicating strong performance and potential for continued outperformance over the next 3 to 6 months [7] - The industry group has favorable metrics, with a PEG ratio of 1.57 and projected EPS growth of 13.18%, compared to the iShares S&P 500's PEG ratio of 2.12 and projected EPS growth of 6.87% [9] Company Highlights - Gilead Sciences (GILD) is a leading stock in the biomedical sector, known for its innovative medicines for life-threatening illnesses. It has a Zacks Rank of 2 (Buy) and has a trailing four-quarter average earnings surprise of 19.5% [11][12] - GILD reported fourth-quarter earnings of 1.90pershare,exceedingconsensusestimatesby13.81.90 per share, exceeding consensus estimates by 13.8%. The stock is trading at 14.5 times forward earnings and has increased over 23% in 2025, reaching a 52-week high [12][13] - Jazz Pharmaceuticals (JAZZ) is another strong performer in the same industry, holding a Zacks Rank of 1 (Strong Buy). The company focuses on neuroscience and oncology and has surpassed earnings estimates in three of the past four quarters [15][16] - JAZZ reported fourth-quarter earnings of 6.60 per share, a 14% surprise over consensus estimates. The stock trades at six times forward earnings, significantly below the industry average, and has advanced more than 11% this year [16][17][18] Investment Strategy - The Zacks Rank methodology helps identify stocks with positive earnings estimate revisions, which can lead to better investment outcomes. Stocks with a Zacks Rank of 3 or better and a positive Earnings ESP have produced positive surprises 70% of the time [20] - JAZZ has a Zacks Rank of 1 and an Earnings ESP of +3.6%, indicating potential for another earnings beat in the upcoming Q1 results [21]