Gilead Sciences Stock To $180?

Gilead Sciences (GILD) stock has jumped 10% during the past week, and is currently trading at $137.78. Our multi-factor assessment suggests that it may be time to buy more shares of GILD stock. We have, overall, a positive view of the stock, and a price of $180 may not be out of reach. We believe there are only a couple of things to fear in GILD stock given its overall Strong operating performance and financial condition. Considering stock’s Moderate valuation, we think it is Attractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $171 Bil in market cap, Gilead Sciences provides innovative medicines addressing unmet medical needs globally, specializing in HIV/AIDS treatments including Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/Eviplera, and Atripla.

[1] Valuation Looks Moderate

This table highlights how GILD is valued vs broader market. For more details see: GILD Valuation Ratios

[2] Growth Is Weak

• Gilead Sciences has seen its top line grow at an average rate of 2.3% over the last 3 years
• Its revenues have grown 2.8% from $28 Bil to $29 Bil in the last 12 months
• Also, its quarterly revenues grew 3.0% to $7.8 Bil in the most recent quarter from $7.5 Bil a year ago.

This table highlights how GILD is growing vs broader market. For more details see: GILD Revenue Comparison

[3] Profitability Appears Very Strong

• GILD last 12 month operating income was $11 Bil representing operating margin of 38.3%
• With cash flow margin of 33.2%, it generated nearly $9.7 Bil in operating cash flow over this period
• For the same period, GILD generated nearly $8.1 Bil in net income, suggesting net margin of about 27.9%

This table highlights how GILD profitability vs broader market. For more details see: GILD Operating Income Comparison

[4] Financial Stability Looks Very Strong

• GILD Debt was $25 Bil at the end of the most recent quarter, while its current Market Cap is $171 Bil. This implies Debt-to-Equity Ratio of 14.5%
• GILD Cash (including cash equivalents) makes up $7.3 Bil of $59 Bil in total Assets. This yields a Cash-to-Assets Ratio of 12.6%

[5] Downturn Resilience Is Strong

GILD has been more resilient than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• GILD stock fell 21.3% from a high of $73.64 on 29 December 2021 to $57.92 on 10 March 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 28 October 2022
• Since then, the stock increased to a high of $137.78 on 26 January 2026 $137.78

 
2020 Covid Pandemic

• GILD stock fell 32.6% from a high of $84.00 on 30 April 2020 to $56.65 on 30 December 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 21 November 2022

 
2008 Global Financial Crisis

• GILD stock fell 34.4% from a high of $28.55 on 12 August 2008 to $18.73 on 10 October 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 2 August 2012

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