Gilead Sciences Stock Analysis: Don’t Lump Gilead Sciences In With The Biotech Bubble

Gilead Sciences Stock Analysis: Summary


  • Gilead Sciences has not had the incredible breakout one would expect from its blowout earnings report.
  • The company’s management team has proven to be extremely capable and has a tendency to keep expectations low and soundly beating them.
  • The HCV franchise has given the company enough financial flexibility to fund future growth in case the current drug pipeline does not come through.
  • I Know First algorithm is bullish on Gilead Sciences over the next year, believing that it is certain to climb to new all-time highs

Stranglehold on the HCV and HIV markets

The biotech industry has been increasing s a whole so far this year, with speculation of a potential bubble forming. While some companies, mainly those among the small-mid cap, have high valuations that they don’t deserve, a pullback is not going to have a lasting effect on Gilead Sciences, Inc. (NASDAQ:GILD).

The success of the company’s HCV franchise has left it with a rather strong balance sheet, and the company’s management has a proven track record of using that balance sheet to fund future growth. With an experienced executive team that knows how to create value, investors should continue buying this stock even at current levels.

Based on the last price level, I Know First algorithm is bullish on this company going forward, believing it will surpass its all-time high and breakout to new levels from there.

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