Why Gilead Sciences (GILD) Stock Is Up Today

NEW YORK (TheStreet) -- Gilead Sciences (GILD) shares are up 1.2% to $90.90 on Monday after having its price target increased to $127 from $112 by analysts at Maxim Group, who also reiterated their "buy" rating on the biotech company's stock. 

The company's new price target represents 41% upside from its opening price today.

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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, notable return on equity, attractive valuation levels, expanding profit margins and solid stock price performance. 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 36.6%. Since the same quarter one year prior, revenues leaped by 136.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, GILEAD SCIENCES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for GILEAD SCIENCES INC is currently very high, coming in at 85.85%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 55.93% significantly outperformed against the industry average.
  • Powered by its strong earnings growth of 378.26% and other important driving factors, this stock has surged by 51.20% 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.
  • You can view the full analysis from the report here: GILD Ratings Report
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