Gilead Sciences Surges 26.5% YTD: Buy, Sell or Hold the Stock?

Gilead Sciences, Inc. GILD, one of the top biotech companies, has put up a robust performance so far in 2025. Shares of the company have surged 26.5% year to date compared with the industry’s growth of 6%.The stock has also outperformed the sector and the S&P 500 Index in this time frame.Gilead Outperforms Industry, Sector & S&P 500 IndexImage Source: Zacks Investment ResearchIt has been an eventful year for GILD so far. The FDA approval for its twice-yearly injectable HIV-1 capsid inhibitor, lenacapavir, for the prevention of HIV has impressed investors. This groundbreaking injectable therapy marks the first and only twice-yearly pre-exposure prophylaxis (PrEP) option available in the United States.Let's delve further into GILD’s strengths and weaknesses to analyze how to play the stock at present.Lenacapavir Approval Boosts GILD’s HIV FranchiseGilead has a market-leading portfolio of HIV treatments. Flagship drug Biktarvy accounts for over 51% of the treatment market in the United States and is expected to maintain momentum.Biktarvy continues to lead in share in major markets around the world.Descovy for PrEP has also put a good performance. GILD is optimistic about Descovy’s growth in the HIV prevention market as it prepares to launch its recently approved PrEP, Yeztugo. GILD now expects HIV sales to grow approximately 3% in 2025 from its prior assumption of flat revenue growth, driven by strong performance of Biktarvy and Descovy so far this year.The recent FDA approval of lenacapavir under the brand name Yeztugo solidifies GILD’s HIV portfolio as its other prevention drug, Truvada, faces generic competition.As the first long-acting injectable PrEP administered just twice a year, Yeztugo addresses persistent barriers, such as challenges with daily oral PrEP, adherence, stigma and healthcare access, which have limited broader PrEP adoption. Yeztugo has a competitive advantage as it needs to be taken only twice a year, unlike daily oral pills, and addresses a broad population.The European Commission also recently granted marketing authorization to HIV prevention drug lenacapavir, under the brand name Yeytuo.Gilead recently announced a partnership with the U.S. State Department and the U.S. President’s Emergency Plan for AIDS Relief to deliver lenacapavir.GILD’s Trodelvy Going Strong, Cell Therapy Under PressureGilead’s oncology portfolio, comprising the Cell Therapy franchise and breast cancer drug Trodelvy, has diversified its overall business.  Breast cancer drug Trodelvy has been strong in second-line metastatic triple-negative breast cancer, and GILD is working toward filing an application seeking approval of Trodelvy in the first-line setting based on the results from the ASCENT-03 and ASCENT-04 trials.However, the Cell Therapy franchise, comprising Yescarta and Tecartus, is currently under pressure due to competitive headwinds in the United States and Europe. These headwinds are expected to persist in the rest of 2025.Gilead recently announced that its wholly owned subsidiary, Kite, has entered into an agreement to acquire Interius BioTherapeutics for $350 million.Interius BioTherapeutics is a privately held biotechnology company developing in vivo CAR therapeutics. This approach enables the generation of CAR T-cells directly within the patient’s body, unlike traditional CAR T therapies that require cell harvesting, engineering and reinfusion.This acquisition complements Kite's expertise in cell therapy with the addition of Interius' in vivo platform integration. Kite markets two CAR T cell therapies — Yescarta and Tecartus.Livdelzi Strengthens GILD’s Liver Disease PortfolioGILD’s diverse portfolio also includes drugs for liver, hematology/oncology and inflammation/respiratory diseases.The FDA approval of seladelpar for the treatment of primary biliary cholangitis (PBC) has strengthened GILD’s liver disease portfolio and validated its CymaBay acquisition. The drug's initial uptake is encouraging.The candidate was approved under the brand name Livdelzi. Gilead also recently received conditional marketing authorization from the European Commission for seladelpar for the treatment of PBC.GILD’s Valuation and Estimate RevisionAccording to the price/earnings ratio, GILD’s shares currently trade at 13.62x forward earnings, lower than the large-cap pharma industry’s average of 14.83x but higher than its mean of 10.69X.Image Source: Zacks Investment ResearchEarnings estimates for GILD have moved north in the past 60 days. The bottom-line estimate for 2025 has moved up to $8.10 from $8.02, while that for 2026 has moved south to $8.50 from $8.53.Image Source: Zacks Investment ResearchStay Invested in GILDGilead’s efforts to constantly innovate its HIV portfolio should enable it to maintain growth amid competition from GSK plc GSK. The approval of Yeztugo for PrEP is a major boost for the company.GSK’s HIV portfolio sales are being driven by strong patient demand for Cabenuva, Apretude and Dovato.GILD has also collaborated with Merck MRK to evaluate the investigational combination of islatravir and lenacapavir for the treatment of HIV, with a phase III update expected in 2026.Gilead’s strategic deals and acquisitions to diversify its business are encouraging as well.However, we recommend prospective investors wait for better entry levels.  For existing investors, a strong positive factor is the company’s attractive dividend yield. Gilead has been consistently increasing and paying out dividends. During the second quarter of 2025, Gilead paid dividends of $994 million and repurchased $527 million of common stock.Its strong cash position (as of June 30, 2025, GILD had $7.1 billion of cash, cash equivalents and marketable debt securities) indicates that the current yield of 2.76% is sustainable.Gilead presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>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 GSK PLC Sponsored ADR (GSK): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): 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