Gilead Sciences, Inc. (NASDAQ:GILD)

CAPS Rating: 4 out of 5

A biopharmaceutical company that discovers, develops and commercializes innovative therapeutics in areas of unmet medical need.

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Player Avatar mrindependent (34.35) Submitted: 12/10/2009 7:41:40 PM : Outperform Start Price: $46.16 GILD Score: -29.32

I noticed Gilead Sciences in my best 25 large cap pe/roe screen. This screen has outperformed the market by about 15% per year during the last 9 years. Gilead is swimming in cash and boasts a 5 yr average historical roe of 49%. The company is swimming in cash. Sales growth has been spectacular for the last five years and the company even managed significant growth in 2009. Despite all of these positives, Gilead is selling for low multiples compared to its history. Current p/bv is 7.35, 5 yr average p/bv is 11. Current p/sales is 6.46, 5yr average is 10.5. P/E based on 2010 estimated earnings is 15. The five year average p/e is 24. The timing seems right. Gilead can be viewed as a tech stock and tech stocks usually outperform in December. Stockscouter 9, Caps 5.

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Member Avatar Zdouble (< 20) Submitted: 1/1/2010 3:18:23 PM
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How were you able to calculate the 15% outperformance over the last 9 years? Does CAPS have a function that allows you to 'back-test' your portfolio? Thanks for this post - I agree with the GILD call.

Member Avatar mrindependent (34.35) Submitted: 1/4/2010 1:15:57 PM
Recs: 0

I subscribe to a Zacks service called Research Wizard. This service allows me to backtest stock screens to December 15, 1999. I do not think that CAPS offers a backtesting function.

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