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Opinions Alex Ruus
Gilead Sciences Inc.GILDTOP PICKDec 10, 2014
Alex RuusStock price when the opinion was issued
As of Jun 17, 2026. Market Open.
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It's a biopharma which as a group did very well last year. Compare that to the smaller biotechs which have not done well the past 3 years. This year, biopharma and staples have underperformed. This boasts a high free cash flow yield and has a great product cycle coming.
In past years, biotech was the safe trade, but this year risk is back, so these stocks have fallen out of favour. Also, there are so many drugs in trials now and big pharma needs new product. She's looking at Gilead and Moderna, because they have low PEs and alot of drugs in development. However, the overall sector is risky.
Has long owned this, because it's a value stock and keeps raising its dividend.
Brian Belski
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Loves this company and thinks it is going a lot higher. A fantastic story in so many ways. A great stock and is generating a ton of shareholder wealth for owners. It is solving a lot of big health problems in the world. This has been the HIV drug leader globally for many years. Continues to produce better medicine in the HIV category. Launched a new revolutionary hepatitis drug called Solvaldi in January, and it looks like it is going to be the most successful 1st year launch of a drug in history. Over $10 billion in sales over 1 drug is pretty rare. They have followed that up by a 2nd hepatitis drug in October, and between the 2, the company is growing like a weed. While the stock has done well, it has not caught up with the fundamentals. Stock is trading at 10X next year’s earnings and generates a ton of free cash flow. They are buying back stock.