Image Source: Pixabay

Summary

• Gilead Sciences shows strong technical buy signals, with a 19.60% gain since Trend Seeker's buy signal on 1/27 and a 50.31% gain in the last year.
• The company offers a diverse portfolio of medicines for HIV, COVID-19, liver diseases, oncology, and more, with significant collaborations enhancing its pipeline.
• Analysts are bullish with 15 strong buy ratings, expecting earnings to increase by 71.99% this year and 4.86% next year, despite a slight revenue dip.
• GILD trades above key moving averages, has a P/E of 24.82, a dividend yield of 2.70%, and strong support at $112.92, making it a compelling buy.

The Chart of the Day belongs to the drug company Gilead Sciences (GILD). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 1/27 the stock gained 19.60%.

GILD Price vs Daily Moving Averages:

(Click on image to enlarge)

GILD (Barchart)

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines for virology, oncology and other therapeutic areas in the United States, Europe, and internationally. The company offers Biktarvy, Genvoya, Descovy, Odefsey, Complera/Eviplera, Symtuza, Truvada, Stribild, and Sunlenca products for the treatment of HIV-1 infection; Veklury, an injection for intravenous use for the treatment of COVID-19; and Epclusa, Vemlidy, Harvoni, Viread, and Livdelzi for the treatment of liver disease. It also provides Yescarta, Tecartus, and Trodelvy products for the treatment of oncology; Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. In addition, the company's portfolio of market products includes Atripla, Cayston, Descovy for PrEP, Emtriva, Hepcludex, Hepsera, Jyseleca, Sovaldi, Truvada for PrEP, Tybost, Vosevi, and Zydelig. It has collaboration agreements with Arcellx, Inc.; Merck & Co., Inc.; Arcus Biosciences, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Everest Medicines; Abingworth LLP; and LEO Pharma to develop, manufacture, and commercialize the small molecule oral STAT6 program. The company was incorporated in 1987 and is headquartered in Foster City, California. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 67.72+ Weighted Alpha
• 50.31% gain in the last year
• .21 - 60 month Beta
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 7.73% in the last month
• Relative Strength Index 65.15%
• Technical support level at $112.92
• Recently traded at $113.33 with 50 day moving average of $101.26

Fundamental Factors:

• Market Cap $141 billion
• P/E 24.82
• Dividend yield 2.70%
• Revenue expected to decrease by .33% this year but increase again by 3.63% next year
• Earnings estimated to increase 71.99% this year and an additional 4.86% next year

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analysts issued 15 strong buy, 5 buy and 11 hold opinions on the stock with price targets between $82 and $140
• Value Line rates the stock above average and comments:" Although final-quarter sales of lead HIV medication Biktarvy should be up 10.3%, sales of older, legacy HIV drugs will likely decline considerably. For the full year, we expect HIV segment sales to be up 6%."
• CFRAs MarketScope rates the stock a buy with a price target of $129 and comments:" In June, GILD shared positive data from the Phase 3 Purpose 1 trials for Lenacapavir, a biannual shot to prevent HIV, which is viewed as transformational prevention option. The results were quite strong, showing 100% efficacy and zero infections in women who received the shot."
• MorningStar thinks the stock is fairly valued and comments:"Gilead's underlying HIV business remains dominant with 8% HIV product sales growth in 2024 and we expect Gilead to see mid-single-digit demand growth in the treatment market (ahead of low-single-digit market growth) over the next few years."
• There are 8,212 investors following the stock on Motley fool and 7,736 think it will beat the market and 476 think it won't
• 257,930 investors monitor the stock on Seeking Alpha

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