Zacks Investment Ideas feature highlights: Gilead Sciences and Johnson & Johnson

For Immediate ReleaseChicago, IL – March 10, 2025– Today, Zacks Investment Ideas feature highlights Gilead Sciences GILD and Johnson & Johnson JNJ.Buy Gilead Sciences (GILD) Stock at 52-Week Highs?Medical pioneer Gilead Sciences 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, 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.Gilead's Industry LeadershipEngaged 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.Gilead's EPS GrowthMore 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%.Monitoring Gilead's P/E ValuationAt 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.Gilead's Generous DividendFurthering 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%.Bottom LineDespite 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.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Johnson & Johnson (JNJ): 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