Bullish Breakout Boosts Target for Top Biotech

by Sam Collins | September 19, 2013 1:43 am

Gilead Sciences (GILD[1]) — This has been a favorite biotech stock of mine since I recommended it on Nov. 19[2], near $37.50. On Aug. 29, at just over $60, I reiterated my positive opinion[3] 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.”

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. The stock could also be positioned as a long-term hold with a 12-month target of over $80.

GILD Chart
Click to Enlarge

Chart Key[4]

  1. GILD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GILD
  2. I recommended it on Nov. 19: https://investorplace.com/2012/11/trade-of-the-day-gilead-sciences-nasdaq-gild/
  3. I reiterated my positive opinion: https://investorplace.com/2013/08/trade-of-the-day-gilead-sciences-gild/
  4. [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: https://investorplace.com/2013/09/trade-of-the-day-gilead-sciences-gild-2/
Short URL: http://invstplc.com/1fCy9NT