Should You Purchase Gilead Sciences Stock in May 2022?

ByDawn Pipkin

May 3, 2022
  • Gilead Sciences revealed massive Q1 results.
  • Its management restructured financial guidance.
  • The current support floor sat at $55.

Gilead Sciences, Inc. witnessed its shares weakening to $57.19 from $72.27 in January 2022. While publishing this content, the price hovered near $59.39. The stock trades under NASDAQ: GILD ticker. Meanwhile, the company unveiled better than expected results amid last week’s Q1 announcement. Furthermore, the management updated monetary guidance for this fiscal year.

HIV Treatment Market Presents Recovery Signs

Gilead Sciences is a biopharmaceutical company based in America. It deals with researching and creating antiviral drugs to treat HIV, influenza, hepatitis C, and hepatitis B. The company’s better than expected Q1 results of the previous week showed a revenue surge to $6.59 billion, following a 2.6% Y/Y increase. Meanwhile, the non-GAAP share earnings stood at $2.12, beating by $0.31.

Sales of the COVID-19 drug Veklury remain crucial for the company’s undertakings, and the treatment saw its total Q1 sales reaching $1.5 billion, representing a 5% increase from 2021 Q1. Veklury has shown success against the latest Omicron variant.

Meanwhile, the firm’s leading business is selling HIV drugs, and this product segment saw a 2% increase to $3.7bn compared to 2021 Q1.

Gilead generated about $1.8bn in running cash flow in Q1, closing the quarter with cash amounting to $6.8bn. Nevertheless, the first-quarter net income saw an over 90% crash towards $12mn within the past year. The company’s COO Johanna Mercier stated that the HIV treatment market presents encouraging recovery signs.

For now, Gilead appears in a lucrative position for future growth. Moreover, the company pays attractive dividends. For instance, divided yield hovers near 4.9% at the moment, while Gilead trades less than 6-times 2021 EBITDA. The company might ensure significant shareholder value for the upcoming several years.

Current Support at $55

Though Gilead Sciences has its share around the 2022 lows, the current price might be a lucrative entry for long-term market players. The price jumping beyond $65 will signal trade for Gilead shares, eyeing the target of $70. Meanwhile, losing the current foothold at $55 would mean a sell sign, opening the path towards $50.

Final Thought

Gilead Sciences revealed impressive Q1 results over the previous week. Meanwhile, the management updated the complete-year EPS from $4.70 – $5.20 to $3.00 – $3.50. Gilead still pays impressively divided, and its current price means an attractive entry area for long-term market participants.

Editorial credit: Trismegist san /

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