Gilead Sciences, Inc. (NASDAQ: GILD)
In my opinion, Gilead Sciences is likely the strongest biotech stock on the market today. They have an incredible story and are offering an even more incredible opportunity. The bottom line here is that GILD is going to grow, and in a big way. Today, we’ll talk about why I’m so bullish on Gilead Sciences and the opportunity the stock is presenting for investors. So, let’s get right to it…
Why My Opinion Of GILD Is A Very Bullish One
Gilead Sciences provides many reasons to be bullish on their stock. To name a few…
- Dominance In HCV – First and foremost, Gilead Sciences plays an incredibly dominant role in the hepatitis C treatment arena. Their treatment, Harvoni is currently the leader in the United States, and that’s not likely to change any time soon. In fact, even in the face of stiff competition, GILD has maintained their dominant position in the market.
- Continued HCV Innovation – While Gilead Sciences is already dominant in the HCV market, that doesn’t mean that they’ve put an end to innovation. Ultimately, the company wants to continue producing better and better treatments for the ailment. This was proven in their most recent data release. The company released top-line results from four studies looking into a new HCV combination drug. The new combination drug relieves the need of phenotype testing in HCV patients. Essentially, it is proving to treat all phenotypes!
- Gaining Ground In Other Indications – While Gilead Sciences maintains a stronghold on the hepatitis C market, it is also gaining ground in other areas. The company has promising candidates in both hepatitis B and in HIV.
The Incredible Opportunity GILD Presents
As if the information listed above wasn’t enough to get excited about GILD and its potential to grow, the stock is offering quite the opportunity. Currently, GILD is oversold and undervalued! Early in the year, ABBV released a hepatitis C drug that would compete with Gilead’s. As a result, investors got cold feet and were afraid to push the stock up. Nonetheless, GILD continued to produce incredible earnings! As a result, the PE ratio on the stock fell to below 10 and is still there currently.
More recently, Hillary Clinton made comments that she plans to submit a bill that will reduce the cost of prescription medication for chronically ill patients dramatically. Unfortunately, this would affect the company’s bottom line if it happened. However, I don’t think that’s going to happen. Clinton would have to make it to office before she could submit such a bill; and that would take a miracle at this point thanks to her email scandal!
Nonetheless, the stock declined following Hillary Clinton’s statements; bringing it’s PMI to 29.5. Anything under 30 shows excessive fear and oversold conditions. It’s when great companies meet these conditions that the most hefty discounts are available for investors, and that’s exactly the case with GILD.
What Do You Think?
Where do you think GILD is headed and why? Let us know your opinion in the comments below!
[Image Courtesy of Breaking Finance News]