Gilead Sciences Inc (GILD): Today's Featured Drugs Winner

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 higher today making it today's featured drugs winner. The industry as a whole closed the day up 1.2%. By the end of trading, Gilead rose 48 cents (1.1%) to $45.43 on light volume. Throughout the day, 6.8 million shares of Gilead exchanged hands as compared to its average daily volume of 9.4 million shares. The stock ranged in a price between $44.51-$45.55 after having opened the day at $45.24 as compared to the previous trading day's close of $44.95. Other companies within the Drugs industry that increased today were: Oxygen Biotherapeutics ( OXBT), up 19.1%, ARCA biopharma ( ABIO), up 18.7%, Celldex Therapeutics ( CLDX), up 17.4%, and Peregrine Pharmaceuticals ( PPHM), up 12.9%.
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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 $69.12 billion and is part of the health care sector. The company has a P/E ratio of 27.7, above the S&P 500 P/E ratio of 17.7. Shares are up 23.6% year to date as of the close of trading on Thursday. 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 robust revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Oramed Pharmaceuticals ( ORMP), down 7.6%, MediciNova ( MNOV), down 6.7%, Affymax ( AFFY), down 6.5%, and Opexa Therapeutics ( OPXA), down 5.3%, were all laggards within the drugs industry with Shire ( SHPG) being today's drugs industry laggard.

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).

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