Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- GILD's revenue growth has slightly outpaced the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 14.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, GILD's share price has jumped by 85.45%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GILD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for GILEAD SCIENCES INC is currently very high, coming in at 76.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.83% is above that of the industry average.
- GILEAD SCIENCES INC's earnings per share declined by 10.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GILEAD SCIENCES INC increased its bottom line by earning $3.55 versus $3.30 in the prior year. This year, the market expects an improvement in earnings ($3.86 versus $3.55).
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases worldwide. Gilead has a market cap of $57.17 billion and is part of the health care sector and drugs industry. The company has a P/E ratio of 23.4, above the S&P 500 P/E ratio of 17.7. Shares are up 84.4% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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