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 was unchanged today. By the end of trading, Gilead fell 71 cents (-1.6%) to $45.17 on average volume. Throughout the day, 12.1 million shares of Gilead exchanged hands as compared to its average daily volume of 9.1 million shares. The stock ranged in price between $44.96-$46 after having opened the day at $45.81 as compared to the previous trading day's close of $45.88. Other companies within the Drugs industry that declined today were: Supernus Pharmaceuticals ( SUPN), down 19.7%, Albany Molecular Research ( AMRI), down 12.9%, ARCA biopharma ( ABIO), down 10.3%, and Geron Corporation ( GERN), down 9.6%.
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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 $69.83 billion and is part of the health care sector. The company has a P/E ratio of 28, above the S&P 500 P/E ratio of 17.7. Shares are up 24.9% 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 positive front, Progenics Pharmaceuticals ( PGNX), up 29%, Aoxing Pharmaceutical Company ( AXN), up 12%, Atossa Genetics ( ATOS), up 11.1%, and Idera Pharmaceuticals ( IDRA), up 10.9%, were all gainers within the drugs industry with Bristol-Myers Squibb Company ( BMY) 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).

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