Companies 0 See All
Hedge Funds 0 See All
Insiders 0 See All
Institutional Investors 0 See All
Click here to see all results for
News-Stock Analysis

Gilead Sciences, Inc. (GILD): A Bull Case Theory

Published on February 17, 2025 at 7:57 am by Ricardo Pillai in News, Stock Analysis

We came across a bullish thesis on Gilead Sciences, Inc. (GILD) on Substack by Disruptive analytics. In this article, we will summarize the bulls’ thesis on GILD. Gilead Sciences, Inc. (GILD)’s share was trading at $104.08 as of Feb 14th. GILD’s trailing and forward P/E were 273.89 and 13.37 respectively according to Yahoo Finance.

A close-up of a human hand holding a test tube with a blue liquid, representing the biopharmaceutical company’s research and development of new medicines.

Gilead Sciences (GILD) is facing a challenging 2025 due to several external factors that will impact its revenue growth. The company is expected to see a 4% revenue reduction from the Inflation Reduction Act, a 1-2% hit from a strong dollar, and an additional 1% decline due to lower COVID-related hospitalizations. These headwinds will counterbalance the company’s strong underlying growth, resulting in only slightly positive revenue growth for the year.

Despite these challenges, GILD maintains solid cost discipline, which will help sustain profitability. However, the company’s current outlook and the external factors at play make it unlikely that its share price will exceed the $115 fair value estimate in 2025 unless significant changes occur, such as a sharp reduction in interest rates or a surprising boost in sales. By the end of 2025, these headwinds should subside, positioning GILD for a more constructive outlook in 2026, when the stock’s growth potential may become more apparent.

Gilead Sciences, Inc. (GILD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held GILD at the end of the third quarter which was 62 in the previous quarter. While we acknowledge the risk and potential of GILD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GILD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.