It's Not Too Late for Investors to Start Buying GILD Stock

In the last reported quarter, the segmental sales growth ofGILD was solid. In the coming months, the company should benefit from its research breakthrough and drug approvals. We think it would be wise to buy GILD's shares now. Please read on.

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There are unmet medical needs in the United States, Europe, and other countries. Over the past six months and a month, the stock has increased in value by 12.1% and 3.5%, respectively.

In the last reported quarter, the company reported sales that were very high. For the second quarter ended June 30, 2022, GILD's total product sales increased by 7 percent. The company's HIV product sales increased from the prior-year quarter. There was a year-over-year increase of 71% in the company's sales of cancer drugs.

Last month, GILD and MiroBio announced a definitive agreement under which GILD will acquire the U.K. based company for approximately $400 million in cash. Through the acquisition, the company will have access to the exclusive discovery platform of MiroBio.

GILD's performance could be affected by this.

There are latest developments.

The World Health Organization has expanded its guidelines for the use of Veklury. The company stated that WHO updated its guidelines to recommend the drug to treat patients with severe COVID.

The European Commission approved Sunlenca injection and tablets for the treatment of HIV in adults with multi-drug resistant HIV for whom it is otherwise impossible to develop the disease.

With a new treatment option available every six months, lenacapavir is a first-in-class capsid inhibitor with a multi-stage mechanism of action and no known cross-resistance to other classes of medications.

The profitability is strong.

The gross profit margin of GILD is higher than the industry average. The negative industry averages are 21.4%, 38.6%, and 29.7%. The industry average is 4.1%.

There is a discounted valuation.

The stock is currently trading at less than the industry average of 18.26x. Its forward EV/Sales is lower than the industry average. The forward Price/Sales of 3.42x is lower than the industry average.

There is a consensus rating and price target.

Five of the 15 Wall Street analysts that rated GILD gave it a Buy rating. There is a 12-month median price target. The price targets ranged from a low to a high.

POWR ratings reflect solid prospects.

An overall grade of B equates to a Buy rating in the POWR Ratings system. The POWR Ratings are calculated using 118 different factors.

Each stock is evaluated based on eight categories. GILD received A grades for value and quality. The company's multiples are in line with the value grade. GILD's profitability is in line with quality.

GILD is a stock in the F-rated biotech industry.

We graded GILD for sentiment, stability, growth, and momentum. You can get all GILD ratings here.

The bottom line.

GILD demonstrated strong financial performance in the last reported quarter and is on track to deliver solid growth in the coming months. The positive analyst sentiment and the firm's fundamental strength may lead to a significant upside for the stock. It's a good idea to invest in the stock now.

How doesGILD stack up against its peers?

The POWR rating of GILD equates to a Buy rating.

GILD was trading at $65.15 per share on Friday, up $0.15 from the previous day. GILD has declined since the beginning of the year while the S&P 500 has risen.

A financial journalist and equity research analyst, Pragya is passionate about investing She majored in finance in college and is currently pursuing a degree in economics.

There is more.

It is not too late for investors to start buying GILD stock.

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