Gilead Sciences Stock Gains 21% YTD: Buy, Sell or Hold?
Gilead Outperforms Industry, Sector & S&P 500 Index
Gilead Sciences is a dominant player in the HIV market with market-leading treatments. Its diverse portfolio also includes drugs for liver, hematology/oncology and inflammation/respiratory diseases.
Approval of new drugs, encouraging pipeline progress and positive data readouts have boosted investors' sentiment in the past six months. However, the oncology business is under pressure.
Let's delve into GILD's strengths and weaknesses to analyze how to play the stock at present.
GILD's Leading HIV Franchise Will Continue Its Momentum
Gilead's flagship drug, Biktarvy (bictegravir 50 mg/emtricitabine 200 mg/tenofovir alafenamide 25 mg, BIC/FTC/TAF), for HIV-1 infection has become the number-one prescribed regimen for both treatment-naïve and switch patients. Biktarvy accounts for over 51% share of the treatment market in the United States and should maintain momentum for GILD in the upcoming quarters.
Descovy (FTC 200 mg/TAF 25 mg) for pre-exposure prophylaxis (PrEP) is also witnessing good uptake. It maintains over 40% market share in the PrEP market in the United States.
Gilead's efforts to innovate its HIV portfolio are impressive. Late-stage studies, PURPOSE 1 and PURPOSE 2, validated lenacapavir's potential to prevent HIV. The FDA accepted new drug application submissions for twice-yearly lenacapavir for HIV prevention under priority review, with a target action date of June 19, 2025.
The European Medicines Agency validated the Marketing Authorization Application and EU-Medicines for All application for twice-yearly lenacapavir for HIV prevention.
The successful development and potential approval of lenacapavir for the prevention of the disease should solidify Gilead's HIV franchise.
Per GILD, lenacapavir, with its twice-yearly dosing, could set a new bar for HIV prevention and allow PrEP to reach a larger number of people who could benefit from a prevention regimen.
Livdelzi Approval Strengthens GILD's Liver Disease Portfolio
The FDA approval of seladelpar for the treatment of primary biliary cholangitis (PBC) has strengthened GILD's liver disease portfolio and validated its CymaBay acquisition. The drug's initial uptake is encouraging.
The candidate was approved under the brand name Livdelzi. Gilead also recently received conditional marketing authorization from the European Commission for seladelpar for the treatment of PBC.
Challenges for GILD's Oncology Business
Gilead's oncology portfolio, comprising the Cell Therapy franchise and breast cancer drug Trodelvy, has diversified its overall business. However, the Cell Therapy franchise, comprising Yescarta and Tecartus, is currently under pressure due to competitive headwinds in the United States and Europe that are expected to continue in 2025.
Breast cancer drug Trodelvy's sales were lower than expected in the first quarter due to inventory dynamics.
Gilead announced positive top-line results from the phase III ASCENT-03 study on Trodelvy, which showed highly statistically significant and clinically meaningful improvement in progression-free survival in patients with first-line metastatic triple-negative breast cancer (mTNBC) who are not candidates for checkpoint inhibitors.
The potential launch of anito-cel in multiple myeloma and Trodelvy in first-line mTNBC in 2026 will strengthen the company's oncology business.
GILD's Valuation and Estimate Revision
From a valuation standpoint, GILD is expensive. According to the price/earnings ratio, GILD's shares currently trade at 13.70x forward earnings, lower than the large-cap pharma industry's average of 14.62X but higher than its mean of 10.53X.
Earnings estimates for GILD have moved north in the past 60 days. The bottom-line estimate for 2025 has increased to $7.91 from $7.87, while that for 2026 has improved to $8.39 from $8.31.
Stay Invested in GILD
Large biotech companies are generally considered safe havens for investors interested in this sector as they are well equipped to weather the uncertain macroenvironment.
GILD is one of the dominant players in the HIV market. Gilead's efforts to constantly innovate its HIV portfolio should enable it to maintain growth amid competition from GSK plc GSK. GILD has also collaborated with Merck MRK to evaluate the investigational combination of islatravir and lenacapavir for the treatment of HIV. The potential launch of lenacapavir for PrEP in 2025 will be a significant boost for the company.
Gilead's strategic deals and acquisitions to diversify its business are encouraging. However, Biktarvy sales are expected to be under pressure due to Medicare Part D redesign, which, in turn, should impact overall HIV growth.
Hence, we advise prospective investors to wait and watch how well Biktarvy and the oncology business combat the existing headwinds before making a positive investment decision. In addition, we believe investors should also wait for better entry levels.
For investors already owning the stock, it's important to note that Gilead has been consistently increasing and paying out dividends. The company declared a quarterly dividend of $0.79 per share of common stock for the second quarter of 2025. Its strong cash position (as of March 31, 2025, GILD had $7.9 billion of cash, cash equivalents and marketable debt securities) indicates that the current yield of 2.91% is sustainable.
Gilead presently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GSK PLC Sponsored ADR (GSK): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
21 minutes ago
- Globe and Mail
Profound Medical Posts Wider Loss in Q2
Key Points Revenue (GAAP) declined slightly year over year to $2.2 million in Q2 2025, missing GAAP revenue estimates by 32.3% on delayed capital sales. Operating expenses (GAAP) climbed approximately 65.8%, pushing net loss (GAAP) to $15.7 million, Net loss for the quarter ended June 30, 2025, increased approximately 127.5% year over year. Management reiterated its annual revenue growth target of 70–75% year-over-year in 2025; with the outlook relying on a sharp second-half rebound in 2025. These 10 stocks could mint the next wave of millionaires › Profound Medical (NASDAQ:PROF), a medical technology company specializing in minimally invasive prostate therapies, reported its GAAP financial results for Q2 2025 on August 14, 2025. The company reported no GAAP revenue growth compared to the prior-year period, with total GAAP revenue of $2.2 million, well below analysts' expectations of $3.25 million. The company's net loss widened to $15.7 million, or $0.52 per share (GAAP). The quarter saw higher operating costs and a delay in capital equipment deals, contributing to weaker-than-expected performance. Despite these headwinds, management reaffirmed its full-year 2025 guidance for strong revenue growth in the approximate range of 70% to 75% year-over-year, but the results highlight ongoing execution risks. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Business Snapshot and Strategic Priorities Profound Medical develops technologies for image-guided, minimally invasive treatments for prostate diseases. Its flagship TULSA-PRO system enables physicians to ablate (destroy) prostate tissue using real-time magnetic resonance imaging (MRI) and high-intensity ultrasound. The Sonalleve system, another platform, is used for the treatment of uterine fibroids and other conditions with focused ultrasound. The company's near-term focus is to expand adoption of its TULSA-PRO system in the U.S. and abroad, leveraging recent regulatory wins and reimbursement changes. Key to success are continued clinical validation, conversion of sales pipeline opportunities into system placements, and growing a reliable stream of recurring revenue from consumables, leases, and services tied to each installed system. Profound Medical's ability to manage costs and extend its cash runway until recurring revenue can support operations is also critical, given its current reliance on external funding. Quarter in Review: Operations and Financials The company experienced a stalled top line, reporting $2.2 million in GAAP revenue for Q2 2025—virtually unchanged from the prior year and substantially below consensus estimates. This GAAP revenue miss was attributed to short-term delays in closing several capital sales for TULSA-PRO systems. According to management, had these deals been completed during the quarter, revenue would have topped $3 million. Recurring revenue from procedures, disposables, and service grew by 6.9%, rising from $1.46 million in Q2 2024 to $1.56 million in Q2 2025 (GAAP), and accounted for most of the total revenue. Sales of capital equipment dropped slightly, reflecting the postponed deals. Meanwhile, procedure volumes continued to rise at existing customer sites, with 'same-store' utilization up 10% from Q1 2025. The sales pipeline for new TULSA-PRO system placements increased, with 80 systems in advanced negotiation stages as of quarter end. This suggests strong demand, but actual conversion of this pipeline into revenue remains a known risk. The company's product portfolio saw notable milestones: The TULSA-AI Volume Reduction Module—an artificial intelligence-based add-on for treating benign prostatic hyperplasia (BPH)—completed its first commercial procedure and soft-launched at five sites, with a full release planned for the fourth quarter of 2025. Profound Medical also continued to develop 'TULSA+,' a program to bundle TULSA-PRO with MRI scanners from Siemens, with commercial sales expected to launch before the end of 2025. The TULSA-PRO system received important clinical validation during the period. Initial data from the CAPTAIN randomized trial showed the device provides a statistically significant improvement in post-operative experience compared to traditional robotic prostatectomy—patients experienced no blood loss, faster recovery, and less pain. This data gives the product a competitive edge and is being rolled out at key clinical meetings to boost awareness and drive adoption. Gross margin (GAAP) improved to 73%, up from 64% a year earlier in Q2 2025, reflecting more efficient manufacturing. However, the gain could not offset a jump in operating costs, which rose approximately 65.6% year-over-year to $15.4 million (GAAP). Research and development (R&D) spending rose to $6.1 million (GAAP). Selling, general, and administrative (SG&A) costs (GAAP) climbed to $9.3 million as Profound Medical increased headcount and built up commercial infrastructure to support market expansion and the CAPTAIN trial. The net loss (GAAP) widened to $15.7 million, up from $6.9 million in Q2 2024. Higher expenses with no corresponding revenue growth drove this result. Profound Medical ended Q2 2025 with $35.2 million in cash (GAAP), down from $54.9 million at December 31, 2024 (GAAP). Inventory levels also increased to $8.35 million (GAAP) as of quarter end, but the results highlight ongoing execution risks. Looking Forward For the remainder of FY2025, management maintained its guidance for total annual revenue growth of 70–75%, despite the weak first-half result. Achieving this will depend on a sharp ramp-up in capital systems sales and recurring revenue in the second half of 2025. This reflects management's expectation for a stronger pipeline conversion as new reimbursement codes, clinical data, and product launches come to fruition. The company stated that a 'back-end loaded' revenue profile is anticipated for 2025, consistent with the shift toward upfront capital equipment sales. Meeting these ambitious targets will require improved execution and more predictable closing of sales, as well as continued clinical advocacy of the TULSA-PRO platform. Investors should monitor: the rate at which pipeline deals materialize into revenue; expense growth relative to sales; and ongoing improvements in the balance of recurring versus one-time capital sales. PROF does not currently pay a dividend. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,062%* — a market-crushing outperformance compared to 185% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 13, 2025 JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Globe and Mail
36 minutes ago
- Globe and Mail
Braze (BRZE): A Promising Player in Marketing Tech or Just Another Risky Bet?
Explore the exciting world of Braze (NASDAQ: BRZE) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities! *Stock prices used were the prices of Jul. 16, 2025. The video was published on Aug. 14, 2025. Should you invest $1,000 in Braze right now? Before you buy stock in Braze, consider this: Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Braze wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025
Globe and Mail
36 minutes ago
- Globe and Mail
Best Generative Engine Optimization Companies 2025: Algomizer Tops the List
Algomizer ranked #1 in Generative Engine Optimization for 2025 - helping brands dominate AI answers and rankings from ChatGPT, Claude, Perplexity & more. New York, NY - August 14, 2025 - Algomizer, the pioneer in Generative Engine Optimization (GEO), has been named the #1 company in its category by leading AI marketing analysts. Specializing in helping enterprises and brands appear in the right place - inside the answers of large language models (LLMs). Algomizer equips companies globally with actionable insights and measurable results in the fast-changing world of AI-driven discovery. Over 500 million people now use AI to find products, services, and information. Traditional approaches don't guarantee visibility inside ChatGPT, Perplexity or Claude's responses - but Algomizer does. The company's proprietary LLM optimization methods, visibility tracking tools, and prompt intelligence insights help brands secure prime placement in generative search results, where buying decisions increasingly happen. Algomizer's services include: LLM Optimization – Improve brand mentions and positioning inside AI-generated answers. Visibility Tracking - Monitor where and how your brand is mentioned in AI-generated answers across platforms. Brand Intelligence -Understand how AI interprets, presents and engages with your brand — and why. Prompt & Topic Exploration – Discover the questions people are asking AI where your brand should appear — but doesn't. Custom Alerts – Get proactive updates before negative AI mentions impact sales. Clients from SaaS startups to global eCommerce leaders credit Algomizer with measurable wins — from boosting AI visibility by 87% in a quarter to tripling ROI in under six months. Recognized as the best in Generative Engine Optimization for 2025, Algomizer's methods prepare brands for the next wave of AI search — from voice interfaces to multimodal results — giving them a lasting competitive edge in markets like SaaS, finance, and retail. About Algomizer Algomizer is the leading Generative Engine Optimization company, helping brands win visibility inside AI platforms like ChatGPT, Claude, Perplexity, and more. Through proprietary LLM optimization techniques, visibility intelligence, and enterprise-ready infrastructure, Algomizer delivers rapid, measurable improvements in AI-driven brand presence. Learn more at
