Gilead Sciences Forecast: 5.22% Gain Since Bullish Forecast In 14 Days

Gilead Sciences Forecast: 5.22% Gain Since Bullish Forecast In 14 Days

Gilead Sciences is an American biotechnology company that discovers, gilead sciences stock forecastdevelops and commercializes therapeutics. The company concentrated primarily on antiviral drugs to treat patients infected with HIV, hepatitis B, or influenza. On November 28th, I Know First published an article titled “Gilead Sciences: Is Gilead Taking The Lead? – A Bullish Fundamental & Algorithmic Perspective” on Seeking Alpha. The algorithm had a signal strength of 40.00 and a predictability indicator of 0.26 for Gilead Sciences over the one-month time horizon. GILD stock has already increased 5.22% since the publication of the article.

The article pointed to how Gilead is a market leader with astonishing revenue, earnings-per-share, and income growth both in the U.S. and abroad, and decent ROE as reasons for why it was a stock with growth potential looking to the future. It also conveyed how Gilead had new positive business developments coming soon. Much of Gilead’s growth over the past year has been due to Solvadi, a Hepatitis C drug the company released last December that is considered to be a miracle drug for the disease. One of Gilead’s competitors, AbbVie, will be releasing their own Hepatitis C drug soon, causing concerns that revenue from Solvadi might decline. Investors should not be worried, however, as AbbVie’s drug is not as good and Gilead is releasing their new Hepatitis C drug, Harvoni, approved by the FDA in October. Gilead believes that this drug, when used with Solvadi, is better than AbbVie’s new drug, as it can clear Hepatitis C in 12 weeks with 99% effectiveness, and is a once a day pill. AbbVie’s drug, on the other hand, is only 90% effective and needs to be taken three times a day.

Moving into the future, Gilead will attempt to move beyond the Hepatitis C drugs. Gilead has had incredible growth in revenue due to their success with these pills, and have also had success with their HIV medications. They manufacture five separate HIV medications, all which have the potential to hit billion-dollar status this year. The growth and added revenue give Gilead a chance to expand, as they are already releasing their first oncology drug, Zydelig. This medication has received FDA approval for treating relapsing chronic lymphocytic leukemia, or CLL, relapsing follicular B-cell non-Hodgkin lymphoma and relapsing small lymphocytic lymphoma. Aside from its hit HIV and Hepatitis drugs, Gilead Sciences is also developing drugs for hepatitis B, pancreatic cancer, colorectal cancer, cardiovascular disease, and respiratory disease.

Gilead Sciences Stock Forecast

Gilead Science’s hold of the Hepatitis C and HIV markets and exciting expansion into other fields have helped their stock price increase like the algorithm said in the original article. The above figure is from the Top 10 Stock Picks forecast from December 8th, 2013. This prediction was for the one-year time horizon and was titled “Best Stocks To Buy: 14.60% Average Return In 1 Year”. In this forecast, Gilead Sciences (GILD) had a signal strength of 81.18 and a predictability indicator of 0.36. In accordance with the algorithm, the stock gained 42.67% over that time.

The Hepatitis C drug market demand has started to slightly decrease. Gilead Sciences is in a great position to continue to grow, however, as they release new promising drugs in the short-term and have the assets needed to be a leader in multiple fields in the future. Analysts from Barron’s have recently noted that Gilead could generate in excess of $30 billion in cash in the next two years alone, and potentially over $80 billion over the next 5 years, supporting the I Know First fundamental and algorithmic analysis.