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Opinions Bruce Tatters
Gilead Sciences Inc.GILDHOLDMay 30, 2016
Stock 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
Jim Lebenthal;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
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Healthcare sector has been a tough one to be in in the last 6-12 months. This is a fantastic company. Have a remarkable drug Solvaldi which cures hepatitis C. This got lumped in, to a degree, with other companies on drug pricing. Also, its pipeline is not as deep as some of the other pharmaceutical companies. The growth rate in the underlying business over the next couple of years will not be as fast. Generates a lot of free cash and has virtually no debt on their balance sheet. Prefers Allergan (AGN-N) which is growing double digit top line growth and trading at about 15X earnings.