Should I Buy Gilead Sciences (GILD)? Finance YouTuber Analysis

The YouTuber identifies Gilead Sciences as a favorite in the healthcare sector, which is becoming a "very good deal" due to a gap between its price performance and strong fundamentals. The sector is expected to see 13% earnings growth and trades at or below its 10-year average P/E ratio, with analysts forecasting 15% returns.

“Favorites in the group include Insullet Corporation took her POD, Gilead Sciences, Gild and Device maker Medtronic took her MDT.”

The YouTuber recommends Gilead Sciences due to its commanding lead in HIV drugs, which ensures stable cash flow. Despite recent share price volatility due to pipeline diversification challenges, the stock is considered a good value play, trading significantly below its five-year average on a price-to-sales basis. Historically, it performed well during the 2008 crash, and analysts project over 15% upside.

“this is still one of the best stocks in drug makers gilead has a commanding lead in hiv drugs where it serves 80 percent of the patients in the United States really locking in that cash flow”

The YouTuber sees Gilead Sciences as a good value play after a recent pullback, trading at 2.9 times price-to-sales, over 20% below its five-year average. Despite concerns about its diversification strategy, Gilead maintains a commanding lead in HIV drugs, ensuring strong cash flow, and has a robust dividend growth history.

“That uncertainty though has made it for a good value play with the stock trading at 2.9 times on the price to sales basis that's more than 20% below its five year average.”

The YouTuber recommends Gilead Sciences for its 4.6% dividend yield, which has consistently grown. Despite some volatility in revenue and earnings typical for drug manufacturers, the company is profitable and growing, with a very low debt-to-EBITDA ratio of 1.3x, suggesting it can easily afford its dividend.

“4.6 dividend yield currently... I like to see the dividends grow consistently... they are growing... only 1.3 times debt to ebitda so they can afford the leverage they can afford the dividend.”