Want passive income in a bear market? Discover this biotech stock
With minutes from the last Fed meeting showing that interest rates will continue to rise this year, the economy is expected to slip into a recession. Amid the expected downturn this year, it might be a good idea to buy biotech stock Gilead Sciences (GILD) because of its strong growth prospects and dividend yield. Read more….
shutterstock.com - StockNewsAfter a difficult 2022, the stock market expects new challenges this year. Minutes from the Fed's monetary policy meeting in December showed that interest rate hikes would continue until more progress was made in reducing inflation. This should keep the stock market under pressure this year.
Against this backdrop, investors should look for stocks that can survive and generate passive income in a downturn. Healthcare company Gilead Sciences, Inc. (GILD) was a strong dividend payer. It has increased its dividends for seven consecutive years.
The company paid a quarterly dividend of $0.73 on December 29, 2022. Its annual dividend of $2.92 earns 3.42% on the current share price. It has an average four-year return of 4%. Its dividend payouts have grown at a CAGR of 5% over the past three years and at a CAGR of 7% over the past five years.
GILD gained traction during the pandemic by developing the first antiviral drug approved to treat COVID-19. GILD's revenue and EPS last quarter were above analysts' estimates. Its EPS was 32.9% above the consensus estimate, while its revenue exceeded analysts' estimates by 14.8%.
Daniel O'Day, President and CEO of GILD, said, "This was another very strong quarter across the business. In HIV, the treatment and prevention markets continue to grow with further market share gains for Biktarvy in the treatment, and we received our first approval of our long-acting anti-HIV agent, lenacapavir, in Europe."
"In oncology, there is growing demand for cell therapies, and Trodelvy, Yescarta, and Tecartus have received two approvals in Europe, and Trodelvy has obtained FDA priority review for HR+ metastatic breast cancer/ HER2-. progress from a commercial and clinical perspective and we look forward to building on this momentum,” he added. Lenacapavir holds promise for GILD as it has the potential to generate significant revenue.
The company raised its guidance for fiscal 2022. It now expects total product sales to be between $25.90 billion and $26.20 billion, up from the previously forecast range of 24. $50 billion to $25 billion. Its non-GAAP EPS is expected to be between $6.95 and $7.15, versus $6.35 to $6.75 previously forecast.
Here's what could influence GILD's performance in the coming months:
Strategic Acquisition
On September 20, 2022, GILD announced the completion of the acquisition of UK biotechnology company MiroBio. The acquisition provides GILD with MiroBio's proprietary discovery platform and its entire portfolio of immune inhibitory receptor agonists.
GILD's Executive Vice President of Research, Flavius Martin, said, "Inflammation is a key focus area for Gilead, and the new discovery platform technology and pipeline of MiroBio offer the opportunity to develop potentially best-in-class large molecule therapies to help patients. with currently unmet medical needs."
Strong finances
GILD's HIV product sales increased 7% year-over-year to $4.49 billion for the third quarter ended September 30, 2022. Its total product sales, excluding Veklury , rose 11% year-on-year to $6.05 billion. Additionally, its oncology sales increased 79% from the prior year period to $578 million.
Updated assessment
GILD's forward non-GAAP PER of 12.02x is 38.5% below the industry average of 19.55x. Its forward EV/EBITDA of 9.05x is 33.1% below the industry average of 13.53x. Additionally, the stock's forward P/S of 4.04x is 7.9% below the industry average of 4.39x.
High profitability
In terms of gross profit margin over the last 12 months, GILD's 79.22% is 43.4% higher than the industry average of 55.24%. Likewise, its trailing 12-month EBITDA margin of 47.08% is well above the industry average of 3.73%.
In addition, the stock's trailing 12-month asset turnover rate of 0.42% is 22.9% higher than the industry average of 0.34%.
POWR ratings are promising
GILD has an overall rating of A, which equates to a Stro...
With minutes from the last Fed meeting showing that interest rates will continue to rise this year, the economy is expected to slip into a recession. Amid the expected downturn this year, it might be a good idea to buy biotech stock Gilead Sciences (GILD) because of its strong growth prospects and dividend yield. Read more….
shutterstock.com - StockNewsAfter a difficult 2022, the stock market expects new challenges this year. Minutes from the Fed's monetary policy meeting in December showed that interest rate hikes would continue until more progress was made in reducing inflation. This should keep the stock market under pressure this year.
Against this backdrop, investors should look for stocks that can survive and generate passive income in a downturn. Healthcare company Gilead Sciences, Inc. (GILD) was a strong dividend payer. It has increased its dividends for seven consecutive years.
The company paid a quarterly dividend of $0.73 on December 29, 2022. Its annual dividend of $2.92 earns 3.42% on the current share price. It has an average four-year return of 4%. Its dividend payouts have grown at a CAGR of 5% over the past three years and at a CAGR of 7% over the past five years.
GILD gained traction during the pandemic by developing the first antiviral drug approved to treat COVID-19. GILD's revenue and EPS last quarter were above analysts' estimates. Its EPS was 32.9% above the consensus estimate, while its revenue exceeded analysts' estimates by 14.8%.
Daniel O'Day, President and CEO of GILD, said, "This was another very strong quarter across the business. In HIV, the treatment and prevention markets continue to grow with further market share gains for Biktarvy in the treatment, and we received our first approval of our long-acting anti-HIV agent, lenacapavir, in Europe."
"In oncology, there is growing demand for cell therapies, and Trodelvy, Yescarta, and Tecartus have received two approvals in Europe, and Trodelvy has obtained FDA priority review for HR+ metastatic breast cancer/ HER2-. progress from a commercial and clinical perspective and we look forward to building on this momentum,” he added. Lenacapavir holds promise for GILD as it has the potential to generate significant revenue.
The company raised its guidance for fiscal 2022. It now expects total product sales to be between $25.90 billion and $26.20 billion, up from the previously forecast range of 24. $50 billion to $25 billion. Its non-GAAP EPS is expected to be between $6.95 and $7.15, versus $6.35 to $6.75 previously forecast.
Here's what could influence GILD's performance in the coming months:
Strategic Acquisition
On September 20, 2022, GILD announced the completion of the acquisition of UK biotechnology company MiroBio. The acquisition provides GILD with MiroBio's proprietary discovery platform and its entire portfolio of immune inhibitory receptor agonists.
GILD's Executive Vice President of Research, Flavius Martin, said, "Inflammation is a key focus area for Gilead, and the new discovery platform technology and pipeline of MiroBio offer the opportunity to develop potentially best-in-class large molecule therapies to help patients. with currently unmet medical needs."
Strong finances
GILD's HIV product sales increased 7% year-over-year to $4.49 billion for the third quarter ended September 30, 2022. Its total product sales, excluding Veklury , rose 11% year-on-year to $6.05 billion. Additionally, its oncology sales increased 79% from the prior year period to $578 million.
Updated assessment
GILD's forward non-GAAP PER of 12.02x is 38.5% below the industry average of 19.55x. Its forward EV/EBITDA of 9.05x is 33.1% below the industry average of 13.53x. Additionally, the stock's forward P/S of 4.04x is 7.9% below the industry average of 4.39x.
High profitability
In terms of gross profit margin over the last 12 months, GILD's 79.22% is 43.4% higher than the industry average of 55.24%. Likewise, its trailing 12-month EBITDA margin of 47.08% is well above the industry average of 3.73%.
In addition, the stock's trailing 12-month asset turnover rate of 0.42% is 22.9% higher than the industry average of 0.34%.
POWR ratings are promising
GILD has an overall rating of A, which equates to a Stro...
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