Even in This Rich Market, Gilead Sciences, Inc. Is Offering Investors Value
Major stock market indexes keep hitting record highs, but shares of Gilead Sciences, Inc. (NASDAQ: GILD) have been moving in the opposite direction. Although profits have fallen in recent quarters, this biotech still generates bucketloads of cash, and the recent acquisition of a breakthrough cancer therapy could turn the tide.
The average stock in the benchmark S&P 500 index trades at a price around 25 times the amount of profit earned over the past year. That makes Gilead Sciences' single-digit earnings multiple seem downright irresistible to bargain shoppers.
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Source: Fool.com