Gilead Sciences, Inc. (NASDAQ: GILD)
Gilead Sciences has had a tough month or so in the market. However, in my personal opinion, it’s still a great investment option. As a matter of fact, I would even venture to say that it’s one of the best in biotech. With that said, we’re going to take a look at why we’ve seen downward price movement recently, what we can expect in the near future, and why I believe that GILD stock is a solid investment. So, let’s get right to it.
Why We’ve Seen Recent Declines In GILD Stock
When it comes to any stock, it’s important to remember that any one of a number of factors can play a role in the stock’s value; and that correlation does not always imply causation. With that said, my research points to a couple of key factors causing the drop. Here they are…
- US Economic Outlook – If you haven’t noticed, US stocks as a whole have had a hard time recently, and I think that has a lot to do with the economy. While the US economy was showing incredible signs of growth throughout 2014, the year 2015 hasn’t been so great; and investors are taking note. With a strong dollar hurting exports and consumers spending less, it’s only natural that we see corrections in the market.
- Medication Pricing Conversations – One of the biggest conversations in biotech today is the fact that patients, insurance companies, and regulatory agencies alike are all talking about the high cost of medication. This could lead to a change in how medication pricing works and with GILD selling some medications at $1,000 per pill; these conversations could lead to a cut in the company’s revenue.
Why GILD Is A Great Investment Option Anyway
Although the US economic outlook may be changing and medication price conversations are active. There are still plenty of reasons to invest in Gilead Sciences.
- HIV/Hepatitis C Market Share – Gilead Sciences is the world leader when it comes to HIV and Hepatitis C treatments. Even if the cost of the treatments were to decline a bit; with the mass amounts of people affected by these ailments, GILD still stands to make plenty of money in the market.
- Ask The Analysts – Don’t believe me, just look at what analysts have had to say about GILD lately. Most recently, Vetr upgraded the stock from a “Buy” rating to a “Strong Buy”; and that’s just the most recent in a long list of upgrades dating back to February 3rd.
- Priced & Positioned For Growth – With the declines we’ve seen over the past month, the price of GILD stock has been driven to a low and we should see support in the charts relatively soon. Looking at what the company does, and how much of the market they control; it’s easy to see that the company will grow. Now, it’s all about getting in at the right price; and since the stock is at a low, now may be the best time!
What Do You Think?
Where do you think GILD is headed and why? Let us know in the comments below!