HIV/AIDS and Gilead Sciences, Inc. (NASDAQ:GILD)

The company continues to research other treatments for HIV, as well as other diseases and disorders, including liver disease, cardiovascular disease and cancer.  While no one can say for certain which drugs will receive regulatory approval, the company’s existing products and its pipeline suggest further revenue and earnings gains down the road.  At present, analysts covering Gilead expect the company to post earnings per share (EPS) of $1.97 this year, rising to $2.61 next year.

Gilead is an appealing choice for investors looking for exposure to the HIV/AIDS aspect of the healthcare market.  With a P/E ratio of about 24, GILD shares are cheaper than many other biotech companies.  Moreover, it has an appealing PEG ratio.  The PEG ratio examines the stock’s P/E based on future earnings, and divides it by the estimated rate for long-term earnings growth.  Lower numbers indicate cheaper stocks.  Gilead’s PEG ratio currently stands at 0.63, which further suggests that the stock is attractively priced.

The article HIV/AIDS and Gilead Sciences originally appeared on Fool.com and is written by Erik Dellith.

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