Gilead Sciences, Inc. (NASDAQ: GILD)
Gilead Sciences is one of my favorite stocks to follow; and I’d be willing to bet that I’m not the only person that feels that way. With a stronghold on the hepatitis C and HIV markets, Gilead proves to be stronger and stronger with each passing month; and yesterday, the stock reached an all time high. However, the story seems to be a bit different today as GILD is falling. Nonetheless, I’m not concerned. Today, we’ll talk about why the decline in GILD is a buying opportunity and what we can expect to see from the stock moving forward.
Today’s GILD Declines Aren’t Concerning In The Least!
While there’s no doubt that many investors may start to become concerned about a stock that’s declining. Today’s declines from GILD are no cause for concern. In fact, they are a reason to celebrate. Looking at the Gilead Sciences stock chart, we can see that the stock is currently (11:42) trading at $117.74 per share after a decline of 0.81%. However, there are two important things to remember here. First off, the stock reached a lifetime record high yesterday in the market; and second, price movements in the market are a series of overreactions. With that said, the declines we’re seeing from GILD today are nothing more than natural market movement. After a big increase, it’s common for stocks to pull back and take a breather; and it seems like that’s exactly what GILD is doing now. So, don’t worry about today’s declines; instead, think of the decline as a possible buying opportunity.
Why Gilead Sciences Stock Is Likely To Grow Long Term
A buying opportunity isn’t a solid buying opp unless it comes with the potential for long run gains; and that’s exactly what I think we’ll see from GILD. There are a few reasons for this. First off, as mentioned above, Gilead Sciences maintains a stronghold on the hepatitis C market. While AbbVie (NYSE: ABBV) has attempted to take the throne from Gilead, they have been unsuccessful in doing so. This has a lot to do with the medications themselves. Gilead’s hepatitis C treatment is only one pill once per day, and comes with few side effects. On the other hand, the treatment offered by ABBV requires patients to take several medications per day; one being ribavirin, a drug known to cause severe side effects. Keeping that in mind, GILD offers a far superior treatment, and will likely enjoy the top of the charts in the hep C space for quite some time.
It’s also important to note that GILD is severely undervalued. The company’s current PE ratio is incredibly low; unlike most of the stocks we see in the market today. With a growing global presence, and a dominant position in the HIV and HCV treatment spaces and an incredibly low PE ratio to top it all off, GILD seems to have nowhere to go, but up! While there is downside risk, as there is with any stock, the growth potential in comparison to the downside risk makes GILD one of the most impressive stocks on the market today.
What Do You Think?
Where do you think GILD is headed and why? Let us know in the comments below!