At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.
|Company||Symbol||Industry||Stock Rating||YTD% Gain||S.T. Stop Loss|
Why We Like The Stock:
Gilead Sciences (GILD) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Biotech stocks are tough to pin, as they tend not to move together. Compare Pfizer (PFE), GlaxoSmithKline (GSK), Valeant Pharmaceuticals (VRX), and the SPDR Biotech ETF (XBI) — not exactly similar. So, when looking at biotech stocks, we like to analyze picks on an individual trade basis.
GILD features a fantastic daily chart, though the weekly trend (nearly parabolic) is concerning. However, the stock recently hit highs of $64.04 on July 26, so there is still some decent immediate upside in a short-term trade. We would be buyers of GILD here or on a pullback to the 50-day moving average, as long as it stays above its August 15 intraday low. We expect a run back to July highs.
We Would Be Buyers:
At the current price (~$59.70), or on a pullback to the 50-day moving average ($57.01).
Gilead Sciences, Inc. (Gilead) is a research-based biopharmaceutical company that discovers, develops and commercializes medicines. Gilead’s primary areas of focus include human immunodeficiency virus (HIV)/AIDS, liver diseases, such as hepatitis B and C and cardiovascular/metabolic and respiratory conditions. The Company has operations in North America, Europe and Asia Pacific. The Company’s products include Atripla, Truvada, Viread, Complera/Eviplera, Emtriva, Hepsera, Letairis, Ranexa, Lexiscan/Rapiscan, AmBisome, Vistide, Macugen, Cayston and Tamiflu. In January 2012, the Company acquired Pharmasset, Inc. On February 8, 2013, its subsidiary, acquired YM BioSciences Inc.
Stock Rating: 9.8
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.
Gilead Sciences – Last Three Months
Gilead Sciences – Last 12 Months
Gilead Sciences – Last Five Years
At the time of publication the editor and affiliated companies own the following positions: GILD
Note: Positions may be bought or sold while this publication is in circulation without notice.