Valued at a market cap of $182.5 billion, Gilead Sciences, Inc. (GILD) is a Foster City, California–based biopharmaceutical company focused on discovering, developing, and commercializing innovative medicines. The company addresses significant unmet medical needs, with a strong leadership position in HIV treatments and a growing presence in oncology and inflammatory diseases through its expanding pipeline.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and GILD fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the drug manufacturers - general industry. The company is known for its scientific innovation, strong clinical development capabilities, and focus on addressing high unmet medical needs, which positions it competitively within the industry.
This healthcare giant is currently trading 8.6% below its 52-week high of $157.29, reached on Feb. 11. Shares of GILD have rallied 12.8% over the past three months, considerably outperforming the State Street Health Care Select Sector SPDR ETF’s (XLV) marginal drop during the same time frame.
Moreover, on a YTD basis, shares of GILD are up 17.1%, compared to XLV’s 1.7% rise. In the longer term, GILD has surged 30.2% over the past 52 weeks, outpacing XLV’s 6.5% uptick over the same time frame.
To confirm its bullish trend, GILD has been trading above its 200-day moving average over the past year and has remained above its 50-day moving average since mid-May, with slight fluctuations.
On Feb. 23, GILD entered into a definitive agreement to acquire Arcellx, Inc. (ACLX) for a total equity value of approximately $7.8 billion. The acquisition strengthens Gilead’s oncology portfolio, particularly in CAR-T cell therapy for multiple myeloma, while enhancing its cell therapy capabilities. This strategic move supports diversification beyond its core HIV franchise and reinforces its long-term growth outlook in high-value cancer treatments.
GILD has lagged its rival, Merck & Co., Inc. (MRK), which soared 33.5% over the past 52 weeks. However, it has outpaced MRK’s 13.3% rise on a YTD basis.
Given GILD’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 31 analysts covering it, and the mean price target of $158.11 suggests a 10% premium to its current price levels.
On the date of publication, Neharika Jain 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.
More news from Barchart
- As Uber Buys SpotHero, Should You Buy, Sell, or Hold UBER Stock?
- Sam Altman Casts Doubt on Space-Based Data Centers, But This 1 Hot Stock Is Determined to Make Them a Reality
- 1 Dividend Stock to Buy Now If You Are Still Betting on Data Center Demand
- With Bearish Overhangs in the Rearview Mirror, CrowdStrike (CRWD) Stock Looks Tempting
