2 Reasons to Be Optimistic About Gilead Sciences’ Future

With a market cap of about $83 billion, Gilead Sciences (NASDAQ: GILD) is one of the largest biotech companies in the world. However, big doesn't mean buy, and there are several reasons why investors should think twice before investing in Gilead Sciences. First, the company's stock is currently hovering near its five-year low and is down by 33.7% over that period. Second, though Gilead Sciences' shares seem attractively valued with a forward price-to-earnings (PE) ratio of 10.61, the company's stock looks expensive when considering future earnings. Gilead Sciences' price-to-earnings growth (PEG) ratio is currently 7.62.

Third, Gilead Sciences' Chronic Hepatitis C Virus (HCV) product sales continue to decline. During the fourth quarter, the company's HCV sales were $630 million, compared to $738 million recorded during the prior-year quarter. For the full fiscal year 2019, HCV sales were $2.9 billion, a decrease of about 22% compared to the previous fiscal year. Despite all these issues, there are several reasons to remain somewhat optimistic about Gilead Sciences' future and keep a close eye on the company; here are two such reasons.

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Source Fool.com