Buy Gilead Sciences (GILD) Stock at 52-Week Highs?

Medical pioneer Gilead Sciences GILD has seen its stock etch out new 52-week highs as the broader market pulled back sharply in recent weeks. Gilead has joined Johnson & Johnson JNJ, and a cluster of healthcare stocks that have risen to fresh peaks.This makes it a worthy topic of whether Gilead’s stock can reach higher highs with investors scoping out exposure to the medical sector amid economic uncertainty. Trading at $117 a share, GILD has spiked nearly +30% year to date with the broader market indexes in negative territory.Image Source: Zacks Investment Research Gilead’s Industry Leadership Engaged in the advancement of medicines to prevent and treat life-threatening diseases, Gilead is the leader in developing drugs for the treatment of HIV. The pharmaceutical giant also has an extensive portfolio of drugs for liver diseases, inflammation/respiratory diseases and hematology/oncology.Bringing in $28.75 billion in 2024, Gilead’s top line is expected to dip 1% this year but is projected to rebound and rise 4% in fiscal 2026 to $29.7 billion.Image Source: Zacks Investment Research Gilead’s EPS Growth More intriguing, Gilead’s operational efficiency has led the company and its stock back to prominence. Gilead’s annual earnings are expected to soar 70% in FY25 to $7.87 per share compared to EPS of $4.62 last year. Plus, FY26 EPS is projected to increase another 5%.Image Source: Zacks Investment Research Monitoring Gilead’s P/E Valuation At current levels, GILD still trades at a very reasonable 14.6X forward earnings multiple which is slightly beneath Johnson & Johnson’s 15.6X. GILD also trades at a noticeable discount to its Zacks Medical-Biomedical and Genetics Industry average of 19.1X with the benchmark S&P 500 at 21.6X.Image Source: Zacks Investment Research  Gilead’s Generous Dividend Furthering keeping investors engaged in Gilead’s stock as a defensive hedge is its 2.65% annual dividend yield. This tops the benchmark’s 1.27% average and its industry average of 1.49%.Image Source: Zacks Investment Research Bottom Line Despite such a sharp YTD rally, Gilead Sciences stock sports a Zacks Rank #2 (Buy). At 52-week peaks there could still be more upside for GILD shares as FY25 and FY26 EPS estimates have trended higher in the last 30 days.Furthermore, investors may still be compelled to buy GILD as a hedge against recent market volatility, especially considering Gilead’s EPS growth, industry leadership, and reasonable P/E valuation.   Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks