11 Most Undervalued Quality Stocks to Buy Now

Page 6 of 10

5. Gilead Sciences Inc. (NASDAQ:GILD)

Forward P/E Ratio as of April 14: 13.12

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 provides treatment of HIV/AIDS, COVID-19, and viral hepatitis. It also offers products for the treatment of oncology, pulmonary arterial hypertension, and serious invasive fungal infections.

The HIV treatment market grew by ~3% in 2024, while the prevention market saw a 16% increase in Q4 alone. The company’s HIV business showed growth in 2024, with full-year HIV sales reaching $19.6 billion. This was an 8% increase year-over-year, which was attributed to the success of Biktarvy. This is a leading HIV treatment, which saw a 13% sales surge. Biktarvy holds over 50% of the US market share.

Another key product called Descovy is used for HIV prevention (PrEP) and showed 21% year-over-year growth. It holds more than 40% of the US market share. Gilead Sciences Inc. (NASDAQ:GILD) is now developing lenacapavir for twice-yearly HIV prevention with regulatory filings underway in the US and Europe. The company aims to introduce up to seven new HIV treatment options and two prevention options by 2033, including long-acting formulations.

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.”

Page 6 of 10