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Opinions John Petrides
Gilead Sciences Inc.GILDCOMMENTNov 29, 2016
John PetridesStock 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 really likes this. One of the larger providers of HIV medication, and one of the major players in the hepatitis C market. Currently trading at about 6X 2017 earnings. The market is very fearful of pressure on drug prices, which is starting to hit this company, and is pricing in way too much of a draconian scenario. They have a tremendous balance sheet. They generate a tremendous amount of cash flow, which they will use eventually to bolster the R&D pipeline. They have been down this road before. Expects them to go out and do a massive acquisition. The stock is really attractive here.