Closed with Stop-Loss at price $70.60 - loss is about 7,37%
Gilead Sciences, Inc. (Nasdaq: GILD)
Buy market: $76.22
Take Profit: $86
Remdesivir is an antivirus medicine for the treatment of COVID-19. Data was collected using a comparative analysis of phase 3 SIMPLE and a real retrospective cohort of patients with severe COVID-19.
Remdesiriv shows to improve clinical recovery and reduce the risk of mortality by 62% compared to standard treatment.
• PE is at the industry average of 19.6.
• Current assets exceed current liabilities.
• Interest payments on liabilities exceed EBIT by more than 5 times.
• Current dividend yield is at 3.54%.
• 66% of Profit is spent on dividend payments.
Technical analysisThe daily chart is moderately positive. Correction after the last upward movement is more than 50%. Security can continue its growth and reach the upper border of the ascending channel. The price is above the daily pivot. We will consider a change in the scenario for the stock when it consolidates below $72.
• The debt burden exceeds equity.
• Short-term assets do not cover long-term liabilities.
• The Price to Book Ratio is 4.4, which is higher than the industry's 3.7.
• Weak forecast for revenue growth.
SummaryWe think that Gilead Sciences is stable and until the end of the year can add 12% to their value; additionally, a sharp growth is possible in case of new successes in the treatment of COVID-19.