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Jim Cramer's Stop Trading: Don't Worry About Gilead Sciences

Stocks in this article: GILD ABBV CELG

NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, looked at shares of Gilead Sciences (GILD) , which continue to move higher while being surrounded by "controversy." 

Investors are worried about potential competition from great companies like AbbVie (ABBV) and whether insurers will pay for Gilead's pricey Hepatitis C cure, Cramer explained.

Read More: 10 Stocks Carl Icahn Loves in 2014

But Bernstein issued a report telling investors to stop with the worrying, and Cramer concurs.  Competition likely won't be a problem in the immediate future and the insurance companies are going to pay. 

Despite moving higher by 35% in 2014, it seems like Gilead can continue higher because it still trades at just 10 times earnings, Cramer said. Shares, near $102, are up 35% for the year to date. Biotech leaders like Gilead and Celgene (CELG) can move higher as more investors seek out growth, he added. 


-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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