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Opinions Paul Harris, CFA
Gilead Sciences Inc.GILDHOLDJun 22, 2017
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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A very important story. They had a Hep C drug that was so good it was curing everybody, so it is running out. Everybody underestimated how fast it was happening. This is trading at about 8X earnings. Has a great dividend yield and lots of cash and an incredible balance sheet. They have an HIV drug which is very strong and does well. Feels they have to do something with their cash and move in a different direction by making an acquisition. At this point, the stock is really giving the company zero value for their Hep C business. There is some good value in their pipeline. You aren’t paying a lot for the company right now with their free cash flow yield of almost 9%.