Don’t Pass Up the Chance to Buy This Top Biotech at a Discount

Recent pullback is offering an opportunity to get GILD at a bargain price

   
Don’t Pass Up the Chance to Buy This Top Biotech at a Discount

Gilead Sciences (GILD) — This has been a favorite biotech stock of mine since Nov. 19 near $37.50. On Aug. 29, at just over $60, I reiterated my positive opinion of the stock, citing an increase in earnings estimates by S&P to $1.86 in 2013 and $2.78 in 2014.

At that time, I said, “New hepatitis C drugs and stabilization in market share for their leading HIV drug are expected to enhance future earnings; thus GILD should be high on the list of biotech stocks in investors’ portfolios.”

On Sept. 19, I pointed out that, “Technically the stock is still in a clearly defined bull channel, but it has enhanced its potential by breaking through resistance at $64 from a ‘V’ formation. My trading target had been $67, but Wednesday’s bullish breakout boosted my target to $72.”

However, market conditions have changed due to the failure of political parties to reach an agreement on the budget and debt ceiling. This has reversed the near-term trends of many stocks, providing investors with an opportunity to buy them at much lower prices.

GILD is among the stocks I would like to take a position in at a bargain price. The buy under price is between the August low of $56 and its 200-day moving average at $55.

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Article printed from InvestorPlace Media, http://investorplace.com/2013/10/trade-of-the-day-gilead-sciences-gild-3/.

©2014 InvestorPlace Media, LLC

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