Gilead Sciences (GILD) is a well-established pharmaceutical company with international operations. The company has a patent to a variety of revolutionary drugs including Genvoya, Atripla, Zydelig, Ranexa, and Ambisome. Its drugs are designed to tackle a variety of illnesses which range from liver disease to cystic fibrosis and even cancer. Its biggest revenue drivers so far have been the drugs Harvoni and Solvodi which are designed to treat hepatitis c. In addition to researching and developing its own products, the company often cooperates with competing firms to develop new drugs. Currently, legal woes associated with a whistle blower lawsuit has stalled the company’s stock price. The lawsuit stems from allegations that the company outsourced some of its drugs from non-FDA approved sources in China. In addition, the outcome of current attempts to reform the US health insurance system will greatly affect Gilead’s future revenues. On the bright side, a low unemployment rate coupled
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The upward trend of both moving averages along with a recent cross of the 200-day MA from below by the 50-day MA indicates that the stock is bound to rise (bullish). This is further reinforced by Gilead’s crossing of its lower Bollinger band (lower value of $79.63 and upper value of $84.77). Gilead’s RSI (14) of 42.40 puts it closer to its lower RSI (14) level of 40 indicating that the stock is approaching oversold territory. With a MACD of -0.07 Gilead is below its signal line which may portray a bearish sign. Taking time to mull things over, I believe Gilead is a good buy. While its legal troubles may be worrisome, it’s worth noting that Gilead has already beaten a similar lawsuit by the same individual once before. In addition, Gilead’s cash pile in the range of $20 billion and its recent acquisition of Kite Pharma should set it up for
The upward trend of both moving averages along with a recent cross of the 200-day MA from below by the 50-day MA indicates that the stock is bound to rise (bullish). This is further reinforced by Gilead’s crossing of its lower Bollinger band (lower value of $79.63 and upper value of $84.77). Gilead’s RSI (14) of 42.40 puts it closer to its lower RSI (14) level of 40 indicating that the stock is approaching oversold territory. With a MACD of -0.07 Gilead is below its signal line which may portray a bearish sign. Taking time to mull things over, I believe Gilead is a good buy. While its legal troubles may be worrisome, it’s worth noting that Gilead has already beaten a similar lawsuit by the same individual once before. In addition, Gilead’s cash pile in the range of $20 billion and its recent acquisition of Kite Pharma should set it up for