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Top 6 Stocks to Buy for June

In a somewhat overbought market, it is important to concentrate on stocks that offer unusual value

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Top Stock to Buy #4 – Gilead Sciences (GILD)

On Nov. 19, with Gilead Sciences (NASDAQ:GILD) near $37.50, I said, “This large-cap biotech is well-positioned to gain market share.” And the stock gapped up to a new high resulting from a positive study on its Hepatitis C treatment.

Gilead then suffered two setbacks in late April, when the FDA declined to approve two HIV candidate drugs. And so, on May 1, I suggested that those who bought the stock in November may want to take profits. But recently, the European Commission approved Gilead’s single-tablet regimen for the treatment of HIV-1 and the stock resumed its upward trend.

The stock is up 50% from our initial buy recommendation, and original buyers who did not take the suggestion to sell at just over $50 would be wise to hold the stock for further developments on the success of the new HIV tablet. Current holders of the stock could protect their gains by writing options. The trading target of $65 is the same as the median target of fundamental analysts.

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