Gilead Sciences Inc (GILD): Drugs' Spotlighted Daily Leader

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 0.7%. By the end of trading, Gilead rose $1.92 (3.9%) to $51.65 on heavy volume. Throughout the day, 15.3 million shares of Gilead exchanged hands as compared to its average daily volume of 10 million shares. The stock ranged in a price between $50.18-$51.98 after having opened the day at $50.20 as compared to the previous trading day's close of $49.73. Other companies within the Drugs industry that increased today were: ACADIA Pharmaceuticals ( ACAD), up 64.4%, Redhill Biopharma ( RDHL), up 17%, Coronado Biosciences ( CNDO), up 11.2%, and Biostar Pharmaceuticals ( BSPM), up 9.9%.
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Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases in North America, Europe, and Asia. Gilead has a market cap of $73.61 billion and is part of the health care sector. The company has a P/E ratio of 29.5, above the S&P 500 P/E ratio of 17.7. Shares are up 31.5% year to date as of the close of trading on Wednesday. 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, Durata Therapeutics ( DRTX), down 15.6%, Genvec ( GNVC), down 13%, Synergy Pharmaceuticals ( SGYP), down 11.5%, and Bacterin International Holdings ( BONE), down 9.3%, were all laggards within the drugs industry with Keryx Biopharmaceuticals ( KERX) 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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