Why Gilead Sciences (GILD) is a Top Momentum Stock for the Long-Term

Gilead Sciences (GILD) is highlighted as a potential momentum stock, with a Zacks Rank of #3 (Hold) but a strong VGM Score of A and a Momentum Style Score of B. Shares have increased 0.3% over the past four weeks, and the consensus earnings estimate for fiscal 2025 has risen to $7.92 per share following upward revisions by four analysts, with the company's HIV franchise driving growth, reporting $19.6 billion in sales for 2024, up 8% year-over-year.

Analysis

Gilead Sciences (GILD) is presented by Zacks Investment Research as a stock with notable momentum characteristics, holding a Zacks Rank #3 (Hold) but achieving a strong VGM Score of 'A' and a Momentum Style Score of 'B'. This suggests favorable underlying value, growth, and momentum attributes as per Zacks' proprietary methodology. Financially, Gilead's HIV franchise continues to be a significant growth engine, reporting total sales of $19.6 billion in 2024, an 8% year-over-year increase, largely driven by its flagship treatment Biktarvy. Regarding analyst outlook, four analysts have revised their earnings estimates upward for fiscal 2025 within the last 60 days; however, the Zacks Consensus Estimate for fiscal 2025 earnings per share has consequentially increased by $0, remaining at $7.92. This indicates that these specific upward revisions did not alter the overall consensus. Furthermore, GILD has a track record of outperforming expectations, with an average earnings surprise of 16.5%, and its stock price has registered a 0.3% gain over the past four weeks, aligning with its momentum profile.

Key Decisions for Investors

• Investors should acknowledge GILD's positive momentum signals, including its 'B' Momentum Style Score and recent 0.3% share price appreciation, alongside a strong 'A' VGM Score, but balance this with its neutral Zacks Rank #3 (Hold) when evaluating the stock.
• Monitor upcoming analyst estimate revisions and any changes to the Zacks Consensus EPS for fiscal 2025, which currently stands at $7.92, especially since recent upward revisions by four analysts did not shift this consensus, potentially indicating a point of inflection if broader sentiment changes.
• Consider Gilead's fundamental strengths, such as the consistent 8% year-over-year growth in its HIV franchise sales ($19.6 billion in 2024) and a significant 16.5% average earnings surprise, as factors that could support the stock, particularly if it moves beyond its current 'Hold' rating.