If you follow CNA Finance, or any other website I write for, chances are that you know that Gilead Sciences is one of my favorites in biotech. Right now, the stock is presenting quite the opportunity. So, today, we’ll talk about why Gilead Sciences is such a strong stock, what opportunity it is presenting at the moment, and what we can expect to see from the stock moving forward.
Why Gilead Sciences Should Be In Your Portfolio
If you’ve followed GILD for any stretch of time, chances are that you know that the success story around the company is one of the most interesting in the biotechnology space. Ultimately, there are several reasons to be excited about this stock…
- HCV Control – First and foremost, if you’re talking about Gilead Sciences, chances are that you’re talking about Harvoni. Harvoni is Gilead’s treatment for hepatitis C, a virus that affects quite a few consumers in all market places. Since Harvoni hit the market, GILD has maintained control of the treatment of the virus selling more treatments than any other company. Not only is it the leader in the US market place, the company recently announced that it has received regulatory approval in Japan – another massive market! All in all, GILD has one heck of a hepatitis C franchise, one that I believe only has more room to grow!
- HIV – Gilead Sciences, while most well known for HCV treatments, is also a big player in the HIV market. As a matter of fact, a few months ago, the company may have stumbled upon a way to provide even better treatments for those suffering with the condition.
- Pipeline – As if control over the hepatitis C market and a demanding position in the HIV market weren’t enough, Gilead Sciences is going even further. The company has several treatments in its pipeline and continues to be a leader in medical innovation.
Why GILD Is Presenting A Strong Opportunity
If you’re an investor, what’s your goal? Ultimately, you want to buy low and sell high! Well, Gilead Sciences gives you a great opportunity to do just that. The stock has seen dramatic declines as of late along with the rest of the US market. Before the declines, GILD was already incredibly undervalued, offering a PE ratio below 10. However, after the declines, it has become even more appealing. After all, if you look at the chart, you can see that now is the opportunity to get a 5%+ discount on a stock that was already heavily discounted.
Here’s The Bottom Line
Gilead Sciences hasn’t received the valuation that it deserves; however, in time it will. Nonetheless, because the valuation is so incredibly low, and declines have pushed it even lower, the stock is presenting an incredible opportunity to get in on future gains at a highly discounted rate. That’s a dream come true for most investors!
What Do You Think?
Where do you think GILD is headed and why? Let us know in the comments below!
[Image Courtesy of Bloomberg]