11 Best Drug Stocks to Buy According to Hedge Funds

6. Gilead Sciences, Inc. (NASDAQ:GILD)

Number of Hedge Fund Holders: 79

Gilead Sciences, Inc. (NASDAQ:GILD) is one of the 11 Best Drug Stocks to Buy According to Hedge Funds. Goldman Sachs analyst Salveen Richter reiterated a Hold rating on Gilead Sciences, Inc. (NASDAQ:GILD) on June 10 with a price target of $100.00. The analyst based the rating on the company’s current developments and strategic positioning.

Richter acknowledged that Gilead Sciences, Inc.’s (NASDAQ:GILD) management reaffirmed its long-term strategy to hold a competitive leadership position in virology while simultaneously augmenting its operations into inflammation and oncology. The company’s strong cash flow and robust balance sheet support these optimistic initiatives. Still, the recent clinical hold on a key study on HIV treatment due to safety concerns brings uncertainty, according to the analyst. Management anticipates a delay of several quarters in the program, which supports the analyst’s cautious stance.

The analyst also reasoned that while Gilead Sciences, Inc. (NASDAQ:GILD) has a promising oncology segment, especially supported by recent data from the Trodelvy trials, the company is expected to face challenges due to the broader market dynamics. This includes international cost disparities and drug pricing policies.

Gilead Sciences, Inc. (NASDAQ:GILD) is a biotech company that advances medicines to prevent and treat serious diseases such as cancer, immunodeficiency virus (HIV), viral hepatitis, and COVID-19. Its portfolio of drugs focuses on medical areas with unmet needs and includes AmBisome, Atripla, Biktarvy, Cayston, Complera, and others. Gilead Sciences, Inc. (NASDAQ:GILD) operates in over 35 countries and is the sixth-best drug stock to invest in on our list.