NVSEF - Unloved Gilead Due For Reversal On Flight-To-Safety Money Flows
2024-05-27 01:45:30 ET
Summary
- Gilead is sitting at one of the lowest valuations in the Big Pharma sector, with a high and sustainable 4.6% dividend yield available for new buyers.
- The stock has an enviable track record of rising strongly in price when turmoil hits Wall Street and the U.S. economy.
- On a combination of factors, Gilead may be a top defensive pick to own the rest of 2024.
I will say this pick is based more on a hunch (honed over 37 years of trading) than any concrete news catalyst or technical trading evidence. I bought a stake in Gilead Sciences ( GILD ) recently on the view a bear market and recession will eventually force investors to move money into defensive ideas like pharmaceuticals. This group has an excellent history of witnessing massive flight-to-safety money flows during stressful periods overall on Wall Street.
Specifically, Gilead has performed admirably during the last two major credit crises of the original Tech Bubble bursting between 2000-03, plus the Great Recession (real estate bust) of 2007-09. In addition, the early 2020 pandemic equity market dump with a minor quarter of GDP contraction, and 2022 bear market in stocks proved some of the best times to own this biotech, now Big Pharma business....
Unloved Gilead Due For Reversal On Flight-To-Safety Money Flows