Stock Trading: Gilead Sciences Ready to Reverse?

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  • 10 Months ago
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Gilead Sciences, Inc. (NASDAQ: GILD) is a research-based biopharmaceutical company and one of the largest biotech entities in the world.  The company promotes a principal focus that includes the human immunodeficiency virus (HIV), liver diseases such as chronic hepatitis C virus (HCV) infection and chronic hepatitis B virus (HBV) infection, oncology and inflammation, and serious cardiovascular and respiratory conditions.

The company competes with ViiV Healthcare, Three Rivers Pharmaceuticals, AbbVie Inc., Merck & Co. Inc., Actelion Pharmaceuticals US, Inc., Novartis Pharmaceuticals Corporation, United Therapeutics Corporation, Pfizer Inc., Pharmacyclics, Inc., GlaxoSmithKline, Enzon Pharmaceuticals, Inc., Zeneus Pharma Ltd.  More of the market’s attention has been diverted to these areas since the election of Donald Trump as US President.  

The companies above are all associated with the NASDAQ Composite Index, which is an important market benchmark and an investment instrument that can be accessed using an MT4 account from a reputable market broker.

Recent Developments: Gilead Sciences

The company’s COO Kevin Young expect a slowdown in patients starting hepatitis c therapies to continue in 2017. On November 17 the company says it has terminated collaboration and license agreement with GlobeImmune.  The company then returned GS-4774 rights to GlobeImmune. Earlier in September the company inter into a

Earlier in September, the company enter into a five-year agreement with World Health Organization for visceral leishmaniasis collaboration. The company donates $20 million to enhance access to treatment for the fatal neglected tropical disease.

GILD Q3 earnings per share was 2.75 compared to Reutersanalyst estimate of $2.86 and sales was $7.5 billion compared to $7.45 billion. The analysts are expecting earnings per share of $10.68 and $28.07 billion for year ending December 2017; source Reuters

GILD Stock Performance

The stock is mostly falling in last one year. It was trading around $82-85 a year ago. Its rise to $103 in April and falling since then. Now it’s trading around $72. Its trailing-twelve-month earnings per share is $10.78 and at the current price, the stock looks undervalued at the P/E ratio of 6.63x compared to industry average of 44.19x as per Reuters.

The company started paying a dividend in 2015. It paying $0.47 quarterly dividend. At $0.47 per quarter, the dividend yield is 2.63%. It’s much better than the industry average of 0.5%. It has payout ratio for trailing twelve months of 16.34%

GILD Stock Returns

The stock gives 38.28% annualize return on investment in last 5 year on an average and a mind blowing 70.28% annualize return on equity in last 5 year on average while the industry average returns are near 0 for both; source Reuters. The company has 5 years annualize sales growth rate of 32.64% compared to industry growth rate 21.58% in same period. Its 5 years annualize EPS growth rate is impressive at 48.28%.

GILD’s 5-year average annualize return on assets is handsome at 30.28% compared to industry average of -0.46%. The analysts are recommending outperformer on Reuters.

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