Summer Sale
50% off Premium Yearly
Opinions David Baskin
Gilead Sciences Inc.GILDCOMMENTJul 07, 2016
Stock price when the opinion was issued
As of Jun 17, 2026. Market Open.
You might be interested:
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}
Premium content
This is down because their main drug has new competition, which is always the problem in drug companies. He is always a little leery about the patent protected drugs. They have competition, and are always getting knocked off by the generics. There is always the risk that they get sued by users. He decided not to get involved with this, because they make too much money from one disease, and felt they were vulnerable.