An article in Barron's today points out that last week that the biopharmaceutical company had a nine day winning streak end but it continues to outperform other big biotech stocks like Amgen (AMGN), Celgene (CELG) and Biogen Idec (BIIB).
Analysts continue to praise Gilead, Barron's said, this week following last week's big earnings beat which helped. Sovaldi success is cited as a significant reason.
A Barron's column over the weekend considered whether Gilead was "really a value stock." The conclusion: "It's more likely a growth-at-a-reasonable-price, or GARP, play."
TheStreet Ratings team rates GILEAD SCIENCES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GILEAD SCIENCES INC (GILD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GILD's very impressive revenue growth greatly exceeded the industry average of 26.5%. Since the same quarter one year prior, revenues leaped by 97.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for GILEAD SCIENCES INC is currently very high, coming in at 83.73%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 44.55% significantly outperformed against the industry average.
- Powered by its strong earnings growth of 209.30% and other important driving factors, this stock has surged by 46.49% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- GILEAD SCIENCES INC reported significant earnings per share improvement 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 $1.83 versus $1.64 in the prior year. This year, the market expects an improvement in earnings ($6.20 versus $1.83).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 208.4% when compared to the same quarter one year prior, rising from $722.19 million to $2,227.41 million.
- You can view the full analysis from the report here: GILD Ratings Report