GILD - Gilead Sciences: Disappointing Fundamentals And Sentiment But Still Bullish

2024-05-27 13:07:50 ET

Summary

• At this point, Gilead Sciences could only be fairly valued with trading for 10 times free cash flow.
• With Veklury sales close to a bottom, Gilead Sciences might finally start growing its top line again - acquisition might also contribute to growth.
• With a dividend yield of 4.5% we are paid to wait until sentiment changes at some day.

My last article about Gilead Sciences, Inc. (GILD) was published in August 2023 and once again the stock declined while the overall market outperformed. Back then, the stock was trading for $77, and Gilead Sciences declined 12% while the S&P 500 ( SPY ) increased 20% in the same timeframe. But the story that Gilead Sciences underperformed the S&P 500 is not news at this point. Gilead Sciences underperformed the S&P 500 basically on every timeframe - 6 months, 1 year, 3 years, 5 years, or 10 years. We must go back about 20 years for Gilead Sciences to outperform the S&P 500....

For further details see: