Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Gilead Sciences (GILD)
Headquartered in Foster City, CA, Gilead Sciences is a pioneer in developing drugs for the treatment of human immunodeficiency virus (HIV). The company’s broad portfolio includes drugs for liver diseases, hematology/oncology diseases and inflammation/respiratory diseases. Gilead has a strong HIV franchise with flagship treatment Biktarvy driving the growth. The company’s efforts to develop innovative HIV treatments for prevention are impressive as well. Total sales from the HIV franchise were $19.6 billion in 2024, up 8% year over year, driven by strong growth in lead HIV treatment Biktarvy.
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GILD boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Gilead Sciences are trading at a forward earnings multiple of 14X, as well as a PEG Ratio of 0.7, a Price/Cash Flow ratio of 16.1X, and a Price/Sales ratio of 4.8X.
Many value investors pay close attention to a company's earnings as well. For GILD, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $7.91 per share for 2025. Per share GILD boasts an average earnings surprise of 16.5%.
Investors should take the time to consider GILD for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).