Gilead Sciences, Inc. (GILD): A Bull Case Theory

We came across a bullish thesis on Gilead Sciences, Inc. on Dividend Talks’s Substack. In this article, we will summarize the bulls’ thesis on GILD. Gilead Sciences, Inc.'s share was trading at $110.87 as of June 30^th. GILD’s trailing and forward P/E were 23.29 and 14.01 respectively according to Yahoo Finance.

Gilead Sciences (GILD) is a leading biopharmaceutical company known for its expertise in antiviral therapies, particularly in HIV, hepatitis C, and increasingly, oncology. The company gained prominence during the COVID-19 pandemic through its antiviral drug remdesivir, which was one of the first approved treatments for the virus. Despite its scientific and commercial accomplishments, Gilead has underperformed the S&P 500 over the past decade, reflecting investor concerns around growth and pipeline execution.

Currently, GILD trades at a forward P/E of 13.6x, above its five-year average of 10.5x, suggesting that some optimism may already be priced in. However, the stock is still considered to offer a 10% margin of safety at its current trading price of $107, providing potential downside protection for value-focused investors. Wall Street analysts see modest 8% upside over the next year, reflecting cautious optimism. While not a high-growth story, Gilead’s stable revenue base from its HIV franchise, growing oncology pipeline, and disciplined capital allocation make it a steady compounder with defensive characteristics.

The valuation, while richer than historical norms, remains reasonable in the context of the broader healthcare sector. GILD may not offer explosive upside, but it stands out as a relatively low-risk name with dependable cash flows and a track record of innovation in therapeutic areas with enduring demand. The current setup makes it a solid choice for long-term investors seeking exposure to biotech with a margin of safety and modest upside, supported by consistent execution and a diversified therapeutic portfolio.

Previously we covered a bullish thesis on Gilead Sciences, Inc. by Disruptive Analytics in Feb 2025, which highlighted cost discipline amid revenue headwinds from policy, currency, and COVID declines. The stock has appreciated ~6.5% since as those challenges were priced in. Dividend Talks shares a similar view but emphasizes Gilead’s margin of safety and steady long-term appeal.

GILD isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of GILD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.