Gilead Sciences, Inc. (GILD) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Gilead Sciences (GILD)? Shares have been on the move with the stock up 17.1% over the past month. The stock hit a new 52-week high of $117.39 in the previous session. Gilead Sciences has gained 24.2% since the start of the year compared to the 6% move for the Zacks Medical sector and the 6% return for the Zacks Medical - Biomedical and Genetics industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 11, 2025, Gilead reported EPS of $1.9 versus consensus estimate of $1.67.For the current fiscal year, Gilead is expected to post earnings of $7.86 per share on $28.55 billion in revenues. This represents a 70.13% change in EPS on a -0.7% change in revenues. For the next fiscal year, the company is expected to earn $8.17 per share on $29.7 billion in revenues. This represents a year-over-year change of 3.9% and 4.01%, respectively.Valuation MetricsGilead may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Gilead has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 14.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.3X. On a trailing cash flow basis, the stock currently trades at 16.7X versus its peer group's average of 15.4X. Additionally, the stock has a PEG ratio of 0.75. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Gilead currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Gilead fits the bill. Thus, it seems as though Gilead shares could have potential in the weeks and months to come.How Does GILD Stack Up to the Competition?Shares of GILD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Jazz Pharmaceuticals PLC (JAZZ). JAZZ has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.Earnings were strong last quarter. Jazz Pharmaceuticals PLC beat our consensus estimate by 13.99%, and for the current fiscal year, JAZZ is expected to post earnings of $23.12 per share on revenue of $4.3 billion.Shares of Jazz Pharmaceuticals PLC have gained 14.2% over the past month, and currently trade at a forward P/E of 6.01X and a P/CF of 4.58X.The Medical - Biomedical and Genetics industry is in the top 30% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GILD and JAZZ, even beyond their own solid fundamental situation.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Jazz Pharmaceuticals PLC (JAZZ): 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