Gilead Sciences (GILD): The Stock For The Opportunist!

Gilead Sciences (NASDAQ: GILD)In my humble opinion, Gilead Sciences is one of the best stocks in biotech, if not the best. Not to mention the opportunity is continuing to get better and better as the market continues to slide. Today, we’ll talk about why I think GILD is likely to grow and the incredible opportunity that the stocks is presenting at the moment.

Why GILD Is Slated For Growth

Gilead Sciences is a very trusted stock by many. In fact, a few months ago, I was talking to a friend about my writing in the biotech arena and brought up GILD. His response was GILD isn’t small cap biotech, that’s a blue chip… this coming from a guy who doesn’t spend too much time following the market was impressive. So, there’s no doubt in my mind that investors, beginner and experienced, are well aware that GILD is a strong stock. Here’s why I believe that the stock is likely to see growth…

  • Harvoni – Gilead made its name through Harvoni and Sovaldi, medicines designed to treat the hepatitis C virus. When Harvoni was released, it quickly climbed to be the top treatment for HCV patients throughout the United States. While other companies, like AbbVie (NYSE: ABBV) have released their own treatments for HCV, causing concern for GILD investors, Gilead Sciences has maintained the leadership position by a wide margin. I don’t think that’s going away any time soon!
  • More In HCV – While Gilead Sciences is currently the leader when it comes to the treatment of HCV, that hasn’t stopped them from further medical innovation. In fact, we recently received the results of ASTRAL 1 through 4. These results proved that Gilead’s new combination therapy disregards the need for phenotype testing because the treatment has proven to be effective across all HCV phenotypes.
  • HIV – Gilead Sciences is also a major player in the treatment of HIV. The company is currently working on an experimental treatment they found by accident when assessing a hepatitis B treatment, GS-9620. The problem with HIV is that much of the disease lies dormant, making it hard to track and obliterate. However, while testing GS-9620, GILD found that it has a unique ability to activate multiple aspects of the immune system and believes that it may be strong enough to activate latent HIV-carrying cells. While this is still in preliminary testing, it’s an incredible concept that could lead to a cure for HIV down the road.

All in all, Gilead Sciences is an incredible strong company with an uncanny ability in the world of medical innovation. I don’t believe that the innovation is going to die down any time soon; so, in my mind, there’s only one way fro GILD to go… UP!

Gilead Sciences Is Presenting A Great Opportunity

As investors, it is our goal to buy a stock low and sell it high, making a profit off of the spread. That’s exactly what GILD is allowing investors to do right now. In the wake of the ABBV HCV treatment launch, GILD saw declines as investors were concerned. Not long later, the market started to realize market wide declines that we’re still seeing today. This brought GILD’s price down dramatically; however, earnings never died down. So today, GILD is trading at an incredible discount. The forward looking PE on the stock is 8.55. That’s absurdly low for a strong company. However, the low PE isn’t going to last forever. Those who take advantage of it now will likely be thanking their lucky stars later for presenting them such a strong growth opportunity.

What Do You Think?

Where do you think GILD is headed and why? Let us know in the comments below!

[Image Courtesy of Bloomberg]


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