The US market has had a rough time over recent days; there’s absolutely no denying that. There’s also no denying the fact that Gilead Sciences experienced downward trends along with the rest of the market. However, if there’s one stock that I have faith in with regard to a strong recovery, it’s Gilead Sciences. Today, we’ll talk about why I believe that GILD will come back strong and it will happen relatively fast.
GILD Is Arguably The Most Popular In Biotech
As investors, we all know that more than anything else, it’s investors that cause moves in the market. With that said, Gilead Sciences is an incredibly popular stock in the biotech space. As a matter of fact, the average trade volume on the stock over the last 30 days has been more than 10 million. So, I believe that as a result of incredible popularity, this will be one of the first in the sector that investors nudge up.
Less Risk Than Others In The Sector
Let’s face it, right now, more than any time before, investors need to focus on risk management. The reality is that the world stage isn’t looking so hot on the economic and market front. With the Dow in a full swing correction and the S&P as well as the NASDAQ following suit, investors need to start moving to protect their money. This means that pre-market biotech companies, and others in the sector that may be struggling are likely to lag behind while established companies with proven track records like Gilead Sciences will be looked at in a brighter light.
Gilead Sciences’ Control In The HCV Space
There are several reasons that Gilead can be considered a lower risk stock than others in the sector. However, the most pressing reason is the company’s control over the HCV treatment space. The reality is that even with top-notch competitors in the space looking to take their piece of the pie, GILD has done incredibly well maintaining control. Not to mention, the company recently received regulatory approval in Japan; a move that will likely send sales up regardless of economic or market conditions in the United States and abroad.
Finally, Gilead Sciences is known for innovation; and that innovation hasn’t stopped with their flagship product, Harvoni. As a matter of fact, the company is currently looking into a way to cure HIV that is proving to be impressive to say the least. While there hasn’t been much data about their research as of yet, what I’ve read has me excited; and knowing Gilead Sciences, they’re just the company that can pull such a thing off!
While it may be relatively easy under the current market conditions to find reasons to avoid several stocks, GILD simply isn’t one of them. The reality is that even in the midst of a bear market, GILD is one of the few stocks that has the ability to generate gains.
What Do You Think?
Where do you think GILD is headed and why? Let us know in the comments below!