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Opinions Jon Vialoux
Gilead Sciences Inc.GILDDON'T BUYAug 10, 2016
Jon VialouxStock 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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Biotechs have done quite well, and this is a period of seasonal strength for them. They tend to do well between June and mid-September, and then tend to peak. This one tends to do the same, but it is not showing up this year. Between June and a peak in September, the average gain is almost 20%. Chart shows a long downtrend with a line of support at around $70-$70.50. This is a descending triangle, and if it breaks down through that, you could see considerable downside pressure. He would not be holding this.