10 Undervalued S&P 500 Stocks to Buy According to Hedge Funds

8. Gilead Sciences Inc. (NASDAQ:GILD)

Forward P/E Ratio as of June 25: 13.39

Number of Hedge Fund Holders: 79

Gilead Sciences Inc. (NASDAQ:GILD) is one of the undervalued S&P 500 stocks to buy according to hedge funds. On June 25, Gilead Sciences expanded its oncology pipeline through an exclusive agreement with Kymera Therapeutics Inc. (NASDAQ:KYMR). This deal is potentially valued at up to $750 million and focuses on advancing Kymera’s innovative molecular glue degrader/MGD program targeting cyclin-dependent kinase 2/CDK2.

Gilead will make an upfront payment of up to $85 million, with additional payments contingent on future development milestones and product sales, plus tiered royalties on net product sales. Kymera’s MGDs are designed to selectively eliminate CDK2, which is a protein crucial for cell division that often drives uncontrolled growth in various cancers, such as breast cancer and other solid tumors.

Unlike traditional CDK2 inhibitors that merely block protein activity, MGDs aim to remove the protein entirely. Kymera will lead all research activities for the CDK2 program. If Gilead exercises its option, it will gain worldwide rights to develop, manufacture, and commercialize all resulting products. This move for Gilead follows closely on the heels of the US FDA approval of Yeztugo (lenacapavir) for HIV prevention.

Gilead Sciences Inc. (NASDAQ:GILD) is a biopharmaceutical company that discovers, develops, and commercializes medicines in the areas of unmet medical needs. Kymera Therapeutics Inc. (NASDAQ:KYMR) is a clinical-stage biopharmaceutical company that discovers and develops small-molecule therapeutics.