Is Gilead Sciences Stock Outperforming the S&P 500?

Foster City, California-based Gilead Sciences, Inc. (GILD) discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States and internationally. The company has a market cap of $185.9 billion and provides Biktarvy, Descovy, Genvoya, Odefsey, Sunlenca, Symtuza, and Yeztugo for the treatment of HIV-1 infection in patients, as well as other related drugs.

Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” GILD fits perfectly into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the general drug manufacturers industry.   

Despite its strength, GILD stock slipped 4.9% from its 52-week high of $157.29, reached on Feb. 11. The stock is up 17.3% over the past three months, outperforming the S&P 500 Index’s ($SPX) marginal rise during the same time frame.     

Moreover, GILD has outpaced the broader market over the longer term. The stock has grown 32.7% over the past 52 weeks, while SPX delivered 19.5% returns over the same time frame.           

GILD stock has been trading above its 200-day moving average since August and also above its 50-day moving average since late July. 

On June 24, GILD stock rose marginally following the announcement of U.S. Food and Drug Administration (FDA) approval of its Trodelvy ^® (sacituzumab govitecan-hziy). The drug is a first-in-class Trop-2-directed antibody-drug conjugate, used for treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (mTNBC). This approval is key in the company’s drug pipeline, as it offers a practice-changing first-line treatment option for all patients across PD-L1 status for patients with mTNBC and makes it available for use by the general public, advancing the company’s treatment options to counter more aggressive forms of breast cancer. 

When stacked against its peer, Amgen Inc. (AMGN), GILD has underperformed. Over the past year, AMGN stock has grown 54.3%.

Wall Street currently has a highly bullish view of the stock. Among the 30 analysts tracking GILD, the overall consensus stands at a “Strong Buy.” Its mean price target of $159.10 offers a 6.3% upside potential from current prices.

On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.