2 Must-Own Biotech Stocks To Buy In May

GILD can generate high-profit margins with its HIV and hepatitis C portfolio, as these drugs only require a small sales force and inexpensive manufacturing. The company offers several single-table treatments for HIV. Plus, its next-generation offerings, Genvoya and Biktarvym, are helping to grow market share. GILD is also building a pipeline of drugs outside of HIV and hepatitis through acquisitions.

In fact, it is shifting its focus towards oncology as its breast cancer and urothelial cancer drug, Trodelvy, has a strong potential for indication expansion. GILD has an overall grade of B, which translates into a Buy rating in our POWR Ratings system. The company has a Growth Grade of B, which isn’t surprising as Wall Street analysts forecast over 20% revenue growth in its upcoming quarterly earnings release.

GILD also has a Value Grade of A based on its low valuation. The stock has a paltry forward P/E of 9.91 and a price-to-free-cash flow of 10.8, which is well below the industry average. We also provide grades for GILD based on Momentum, Stability, Sentiment, and Quality. You can find those here. GILD is ranked #5 in the Biotech industry. For other top drugs in the industry, click here

GILD shares rose $0.08 (+0.13%) in pre-market trading on Monday. Year-to-date, GILD has gained 10.36%, versus a 12.41% rise in the benchmark S&P 500 index during the same period.

Vertex Pharmaceuticals Inc. (VRTX)

VRTX discovers and develops small-molecule drugs to treat serious diseases. Its specialty is in cystic fibrosis, where its therapies remain the global standard of care. Its key cystic fibrosis drugs are Kalydeco, Orkambi, Symdeko, and Trikafta. The company also focuses on treatments for inflammatory diseases, influenza, pain, type 1 diabetes, and other rare diseases.

The company’s leading cystic fibrosis drugs are collectively approved to treat approximately half of the 80,000 plus people with cystic fibrosis in North America, Europe, and Australia. Trikafta, especially, has the potential to treat up to 90% of cystic fibrosis patients. These drugs are poised to continue dominating the market due to the disease-modifying potential of the drugs, consistent use by patients, and very little competition.

View single page >> |

Disclaimer: Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.