2024-01-31 21:10:29 ET
Summary
- Gilead Sciences stock recently saw its biggest one-day correction over the past 10-year history. But I think it's overblown. Read on.
- The stock sell-off due to Trodelvy's trial disappointment seems disproportionate, given that the drug represents just ~4.04% of Gilead's total product sales.
- The total return investors receive is effectively ~5% (dividend plus buybacks). At the same time, GILD's EPS is projected to grow at a long-term CAGR of ~4.13% (until FY2030).
- The Gilead stock looks cheap, the business looks healthy with a broad pipeline. Also, there are signs of a potential Q4 earnings beat.
- GILD is a classic GARP 'Buy' today, as it was the last time I wrote about the company.
Intro & Thesis
I initiated coverage of Gilead Sciences, Inc. ( GILD ) stock on October 15, 2023 , and since then GILD has grown relatively steadily, returning 10-12% since my article was published. But then everything changed dramatically when GILD's Trodelvy failed in the Phase 3 lung cancer trial last week:
Read the full article on Seeking Alpha
For further details see:
Gilead Sciences: The Sky Is Not Falling