Is Gilead Sciences Stock a Buy?

Last year, many biotechs were at the forefront of the fight against COVID-19, and investors responded by sending their shares higher. The SPDR S&P Biotech Index ETF -- an industry benchmark -- is up by 73% over the past 12 months, compared with gains of 17% for the S&P 500. One drugmaker that made a lot of noise last year was Gilead Sciences (NASDAQ: GILD). In May 2020, the company's antiviral drug, remdesivir (marketed as Veklury), became the first COVID-19 treatment to receive emergency use authorization (EUA) and then formal approval from the U.S. Food and Drug Administration (FDA).

Several other countries also gave the green light to this drug, including Japan and many European nations. Given these developments, one would expect the company's stock to have outperformed the market recently, but the opposite is actually true: Despite rising sharply in the first half of 2020, its shares are up by only 7% in the past year. Is now a good time to scoop up shares of Gilead Sciences?