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Opinions Paul Harris, CFA
Gilead Sciences Inc.GILDTOP PICKOct 27, 2016
Paul Harris, CFAStock 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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It has a 2.5% dividend yield. It has fallen a lot. The key is that they have two very powerful drugs and $19 Million in cash. The HEP-C drug will have a declining revenue, according to the market, and they also have an HIV drug that is growing. The HEP-C drug will not go away quickly as there are 7000 people in Jails, for example, that need it. The market is giving zero value to their pipeline and they have a good one. They can also make an acquisition. It is a very cheap stock at 6 times earnings.