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Gilead: Long-Term Investors Should Buy Any Dip

Summary

• Biotech juggernaut Gilead Sciences delivered one of the best earnings reports of the quarter after the bell on Tuesday.
• Not only did the company beat both the top and bottom line consensus by a good margin; it also announce a large buyback and initiated its first dividend.
• The stock is up more than 150% over the past two years. Despite rally, this Blue Chip Gem remains one of the cheapest large cap growth stocks in the market.

Biotech juggernaut and Blue Chip Gem Gilead Sciences (NASDAQ:GILD) reported results after the bell on Tuesday. The company easily beat on both top and bottom line expectations. The stock sold off in after-hours however due to conservative forward revenue guidance in 2015.

In addition, a statement during the conference call also caused sentiment to turn temporarily negative. The comment "We expect our 2015 growth to net adjustments for our HCV products in the United States to be approximately 46% or a little more than double of that where we ended 2014 which was around 22%" showed that discounting in the hepatitis C space will increase in 2015 due to new competition in the HCV space as well as roll outs to more restrictive countries (Ex, France) and more public payers (Ex, Veterans Administration).

Even so, it was a wonderful quarter and year for Gilead. Investors who gleaned through the earnings report and read through the conference call should remain assured that the prospects for the company are bright. In addition, the shares are very cheap given the valuation of the overall market and considering Gilead's significant growth prospects. Long term growth & value investors should use any dip to add additional shares in this great large cap growth selection.