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 0.6%. By the end of trading, Gilead rose $0.86 (1.7%) to $51.43 on average volume. Throughout the day, 10,639,051 shares of Gilead exchanged hands as compared to its average daily volume of 10,705,700 shares. The stock ranged in a price between $50.91-$51.84 after having opened the day at $51.30 as compared to the previous trading day's close of $50.57. Other companies within the Drugs industry that increased today were: Albany Molecular Research ( AMRI), up 12.2%, Arrowhead Research Corporation ( ARWR), up 11.8%, Insmed ( INSM), up 11.3% and Alexion Pharmaceuticals ( ALXN), up 10.8%.
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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 $81.3 billion and is part of the health care sector. The company has a P/E ratio of 32.5, above the S&P 500 P/E ratio of 17.7. Shares are up 45.2% year to date as of the close of trading on Wednesday.

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, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Supernus Pharmaceuticals ( SUPN), down 13.1%, Anacor Pharmaceuticals ( ANAC), down 12.5%, Enanta Pharmaceuticals ( ENTA), down 11.8% and ARCA biopharma ( ABIO), down 8.8% , were all laggards within the drugs industry with Bristol-Myers Squibb Company ( BMY) 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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