Gilead Sciences Inc (GILD): Today's Featured Drugs 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 Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Gilead fell 40 cents (-1%) to $39.45 on light volume. Throughout the day, 7.7 million shares of Gilead exchanged hands as compared to its average daily volume of 11.8 million shares. The stock ranged in price between $39.24-$39.82 after having opened the day at $39.75 as compared to the previous trading day's close of $39.85. Other companies within the Drugs industry that declined today were: Celsion Corporation ( CLSN), down 81.2%, Novogen ( NVGN), down 16.4%, MediciNova ( MNOV), down 8.7%, and Repros Therapeutics ( RPRX), down 8.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $59.76 billion and is part of the health care sector. The company has a P/E ratio of 24.8, above the S&P 500 P/E ratio of 17.7. Shares are up 8.6% year to date as of the close of trading on Wednesday. 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 largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, ARCA biopharma ( ABIO), up 26.5%, Redhill Biopharma Ltd ADR ( RDHL), up 23.6%, EntreMed ( ENMD), up 13.9%, and Zogenix ( ZGNX), up 10.9%, were all gainers within the drugs industry with Teva Pharmaceutical Industries ( TEVA) being today's featured drugs industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF ( XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech ( BIS).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

These Stocks Pay You to Own Them

Don't Get Shaken Out of Good Stocks: Cramer's 'Mad Money' Recap (Wed 9/13/17)

Juno, bluebird In Focus as Targets Following Gilead-Kite Aquisition