11 Cheap NASDAQ Stocks to Buy According to Hedge Funds

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9. Gilead Sciences Inc. (NASDAQ:GILD)

Forward P/E Ratio as of April 21: 13.24

Number of Hedge Fund Holders: 74

Gilead Sciences Inc. (NASDAQ:GILD) is a biopharmaceutical company that discovers, develops, and commercializes medicines in the areas of unmet medical need. It has collaboration agreements with companies like Arcus Biosciences Inc. and Merck Sharp & Dohme Corp. It also has several other research collaborations, options, and license agreements.

Gilead’s HIV franchise generated $19.6 billion in 2024 sales, which was a year-over-year improvement of 8%. This success was driven by Biktarvy, which is Gilead’s standard-of-care HIV treatment that had its sales increase by 13% in 2024. Biktarvy now commands over 50% market share in the US. Another contributor is Descovy, which achieved 21% year-over-year growth and holds over 40% US market share in PrEP (pre-exposure prophylaxis).

The overall HIV treatment market grew by ~3% in 2024, while the prevention market accelerated with more than 16% year-over-year growth in Q4. Gilead Sciences Inc. (NASDAQ:GILD) expects a temporary masking of demand-led volume growth in 2025 due to the potential impact of Medicare Part D reform, which is projected to reduce HIV revenue by ~$900 million. However, the underlying HIV business remains strong, with 5% revenue growth anticipated in the segment for 2025.

ClearBridge Value Strategy stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD) in its Q1 2025 investor letter:

“Health care stocks populated our top performers for the quarter. Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) announced strong fourth-quarter earnings growth and also rose both on news that its HIV prevention treatment drug Lenacapavir had been filed for U.S. approval, with an anticipated launch scheduled for mid-2025, and on positive reception to its cirrhosis of the liver treatment Livdelzi in its first full quarter.”

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