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 1.9%. By the end of trading, Gilead fell $2.02 (-3%) to $65.45 on average volume. Throughout the day, 6.5 million shares of Gilead exchanged hands as compared to its average daily volume of 7.1 million shares. The stock ranged in price between $65.33-$67.22 after having opened the day at $66.97 as compared to the previous trading day's close of $67.47. Other companies within the Health Care sector that declined today were: Apricus Biosciences ( APRI), down 16.3%, Corcept Therapeutics ( CORT), down 15.8%, Opexa Therapeutics ( OPXA), down 12.8%, and Alexza Pharmaceuticals ( ALXA), down 12.1%.
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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 $50.72 billion and is part of the drugs industry. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 63.8% year to date as of the close of trading on Tuesday. Currently there are 20 analysts that rate Gilead a buy, no analysts rate it a sell, and two 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, reasonable valuation levels, expanding profit margins and notable return on equity. 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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