Is Gilead Sciences Stock a Buy?
The biotech sector has been on a roll for much of the past year. Even amid the pandemic, the iShares NASDAQ Biotechnology ETF (NASDAQ: IBB) has managed to return 69% over the past 12 months. Gilead Sciences (NASDAQ: GILD) stock, on the other hand, has underperformed during the same period, falling 30%.
What's intriguing about Gilead is that it is also trading at a substantial discount to its peers. This is a well-established viral disease, infectious disease, and oncology biotech. However, you can buy shares for around 9 times earnings and just over 3 times revenue, compared to the industry average of 31 times earnings and 8 times revenue. What gives?
Image source: Getty Images.
Source Fool.com