Gilead Sciences Inc. (GILD:NSD) Analysts rate as a Buy, 10 positive signals detected

STA Research
by: STA Research
Gilead Sciences Inc

Based on the Gilead stock forecast from 9 analysts, the average analyst GILD stock price target is USD 67.94 over the next 12 months. Gilead Sciences Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of GILD stock dividend is Slightly Bullish, which is based on 10 positive signals and 6 negative signals. At the last closing, GILD stock price was USD 66.21GILD stock price has changed by +4.61% over the past week, +3.61% over the past month and -7.67% over the last year.

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company was incorporated in 1987 and is headquartered in Foster City, California.

 

What we like:

Superior total returns:

GILD stock dividend has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced on cashflow basis:

GILD stock price is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity:

GILD stock forecast has shown that the company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

GILD stock forecast has shown that the company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

Gilead stock forecast has shown that the company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

GILD stock forecast has shown that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

Gilead stock forecast has shown that the company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis:

GILD stock price is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Dividend Growth:

GILD stock dividend has shown top quartile growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio:

GILD stock dividend is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns:

Gilead stock forecast has shown that the company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value:

GILD stock price is trading high compared to its peers median on a price to book value basis.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the GILD stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

GILD stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth:

GILD stock dividend has shown below median revenue growth in the previous 5 years compared to its sector

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.