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Opinions Dean Orrico
Gilead Sciences Inc.GILDCOMMENTOct 11, 2016
Dean OrricoStock 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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He owns a bit, but isn’t among his top holdings. More recently it has started looking more and more attractive. They got caught in concerns over pricing, and the government started rerating the companies. When they entered the US market with their HEP C drug, they seemed to be very aggressive on pricing. Even at 100, the price to cash flow is very low, but down at 80 it is extraordinary. All management has to do to make the price go up is to declare a dividend. Thinks the regulatory pressures are probably done.