Gilead Sciences Inc (GILD): Today's Featured Health Care Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Gilead ( GILD) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 1.7%. By the end of trading, Gilead fell $1.03 (-1.5%) to $68.78 on average volume. Throughout the day, 5.6 million shares of Gilead exchanged hands as compared to its average daily volume of seven million shares. The stock ranged in price between $68.74-$69.72 after having opened the day at $69.52 as compared to the previous trading day's close of $69.81. Other companies within the Health Care sector that declined today were: Edwards Life ( EW), down 21.2%, Unilife Corporation ( UNIS), down 16.4%, AngioDynamics ( ANGO), down 11%, and Celsion Corporation ( CLSN), down 9.5%.
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Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases worldwide. Gilead has a market cap of $52.53 billion and is part of the drugs industry. The company has a P/E ratio of 21, above the average drugs industry P/E ratio of 20.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 69.6% year to date as of the close of trading on Monday. Currently there are 19 analysts that rate Gilead a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Gilead as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector could consider ProShares Ultra Short Health Care ( RXD).

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