Gilead Sciences Is on an FDA Approval Hot Streak. Should You Buy the Stock Like There's No Tomorrow?
The company's recent momentum continues unabated.
Gilead Sciences (GILD) has been on a streak of successful FDA approvals, which has contributed to its strong performance this year. The company's financial results have been solid, and its lineup of approved drugs has expanded. However, the recent decline in sales from its coronavirus medicine, Veklury, has raised questions about whether the stock is still an attractive investment.
Despite this, Gilead Sciences has shown improvement in its recent quarters, with revenue reaching $7.8 billion, up 10% year over year. The company's core HIV portfolio has been a significant driver of this growth, with sales increasing by 12% year over year. Additionally, recent approvals, such as Bixlenvo for HIV treatment, Trodelvy for breast cancer, and Hepcludex for chronic hepatitis delta virus, have strengthened Gilead Sciences' position in its key markets.
These approvals, along with the company's flagship products like Biktarvy and Descovy, are expected to contribute to its medium-term revenue and earnings growth. Gilead Sciences also boasts a solid dividend yield of 2.2%, which is higher than the S&P 500's average of 1.1%, and has increased its payouts by 74.5% over the past decade, making it an attractive option for long-term investors.
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