Rating Change #9

Gilead ( GILD) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income increased by 4.8% when compared to the same quarter one year prior, going from $712.06 million to $746.23 million.
  • GILEAD SCIENCES INC has improved earnings per share by 17.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GILEAD SCIENCES INC increased its bottom line by earning $3.30 versus $2.83 in the prior year. This year, the market expects an improvement in earnings ($3.95 versus $3.30).
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.26% over the past year, a rise that has exceeded that of the S&P 500 Index. 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 revenue growth came in higher than the industry average of 7.8%. Since the same quarter one year prior, revenues rose by 10.9%. Growth in the company's revenue appears to have helped boost the earnings per share.

Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. The company has a P/E ratio of 13.3, equal to the average drugs industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Gilead has a market cap of $33.6 billion and is part of the health care sector and drugs industry. Shares are up 16.3% year to date as of the close of trading on Wednesday.

You can view the full Gilead Ratings Report or get investment ideas from our investment research center.

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