NASDAQ:GILD
$46.40
(2/9 2:53PM)
+0.7%
| Open | $46.57 |
Mkt Cap | $41.5 Billion |
| High | $47 |
52Wk High | $50.00 |
| Low | $46.05 |
52Wk Low | $40.62 |
| Volume | 6.6 Million |
Avg Vol 10D | 12.7 Million |
Ockham's Rating/Recommendation Summary
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GILD Revenue
As a value investing shop, we are interested in seeing how GILD's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 13.11x and the low end of the range at 8.15x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for GILD of 5.95x is well below its normal historic Price to Sales levels. At a price of $46.38, GILD is 45% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
GILD Cash Earnings
Looking at GILD specifically in their Cash Earnings capabilities, Ockham views GILD as significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from GILD. For example, GILD's Cash Earnings ratio per share has fluctuated between 21.97 and 35.07 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where GILD is with respect to prior business periods.
So with GILD's current price (latest close of $46.38) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, GILD is 44% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with GILD.
GILD Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. GILD may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As GILD more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
See Why Gilead Sciences, Incorporated News Was Discussed on Fast Money
The latest news from Fast Money on GILD is available through Ockham's news analytics platform RazorWire.
Ranking all stocks in terms of news coverage offers some interesting data. In the case of GILD, it is getting significantly more attention in recent news coverage than we are used to seeing. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Based on our methodology, Gilead Sciences, Incorporated should hold some appeal to value investors as we view it as Undervalued.
“… This used to be 30 p-e and the average stock is 40 p-e and now trading in the teens and this one's trading around a 14 p-e and you're talking about unbelievable information with ... …”
Interested in GILD? See What the Pundits Said on Fast Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on GILD from Fast Money.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Gilead Sciences, Incorporated has been talked about more than normal recently. The Motley Fool CAPS data suggests that investors believe Gilead Sciences, Incorporated will beat the market in the foreseeable future. We consider GILD as Undervalued at the current price of $46.38. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… Pete saw interesting stuff going on in GILEAD. I think if you want to get back into these names and if you've gotten shaken out you can be there, mel. > > …”
Gilead Sciences, Incorporated (GILD) Discussed on CNBC's Closing Bell
Gilead Sciences, Incorporated is in the news. Find out how this impacts GILD trading on Ockham Research.
Comes to tech are the biotech names. GILEAD today announcing a buyback of a billion dollars. One of the few names that remain positive on the day throughout the session. And for the month, GILEAD, genzyme and amgen provided the only bit of strength that we saw as far as the big caps here on the nasdaq. It could be, folks getting a little bit more conservative, michelle. They're starting to look back at some those defensive names and health care and maybe they're including a few of the biotech names along with.
“… GILEAD today announcing a buyback of a billion dollars. One of the few names that remain positive on the day throughout the session. …”
Gilead Sciences, Incorporated (GILD) Discussed on CNBC's Squawk On The Street
Gilead Sciences, Incorporated is in the news. Find out how this impacts GILD trading on Ockham Research.
The dow off of course recent losses in the materials sector in particular and had a bad one recently and more corporate news, GILEAD buying back up to $1 billion in stock. That's how we stand at this hour. >> all right. Here is a look at the markets. The dow finally has some wind in its sales up 115 or so. Nasdaq up 22. S&p up 11. Internally we should look pretty good with that going on. And we do. Almost 4-1 advances over
“… The dow off of course recent losses in the materials sector in particular and had a bad one recently and more corporate news, GILEAD buying back up to $1 billion in stock. …”
Gilead Sciences, Incorporated (GILD) Discussed on CNBC's Squawk On The Street
Gilead Sciences, Incorporated is in the news. Find out how this impacts GILD trading on Ockham Research.
Earnings at 55 cents a share from continuing operations. Six cents ahead of estimates and it's also forecast a solid 2010. Its stock up $2.20 on the news. Lastly GILEAD SCIENCES buying back $1 billion worth of its stock over the next year. This comes after better than expected results earlier this week. Stock up 46 cents on the news. Mark, back to you. >> thank you very much. Here is your street cap. Congress is now investigating toyota. They don't have anything else to
“… Lastly GILEAD SCIENCES buying back $1 billion worth of its stock over the next year. This comes after better than expected results earlier this week. …”
Gilead Sciences, Incorporated (GILD) Discussed on CNBC's Fast Money
Gilead Sciences, Incorporated is in the news. Find out how this impacts GILD trading on Ockham Research.
Some of the dividends and this is an entire sector filled with decent dividend yield stocks and fairly low volatility stocks and you look at j&j and GILEAD had a blowout number last night and amgen just continues to be the stock that works. It's starting to move now to the upside and they had a solid number and not a blowout number and you look at the p-e now in something like an amgen. Pfizer, by the way has 34 drugs rid now in phase tests. They have 130-some odd drugs in
“… Some of the dividends and this is an entire sector filled with decent dividend yield stocks and fairly low volatility stocks and you look at j&j and GILEAD had a blowout number ... …”
Gilead Sciences, Incorporated (GILD) Discussed on CNBC's Closing Bell
Gilead Sciences, Incorporated is in the news. Find out how this impacts GILD trading on Ockham Research.
Expectations but news was could possibly see revenue growth in the quarter. That would be the first time in six quarter and that is big news. Earnings movers here at nasdaq. Better than expected from GILEAD up 7%. United airlines, the parent company, up 0.4%. That's where we stand right now at the nasdaq. Let's head down to the nymex and sharon epperson. >> reporter: energy and metals aren't getting much of a lift from stocks today. In facting, looking at oil prices that have dropped more
“… Better than expected from GILEAD up 7%. United airlines, the parent company, up 0. 4%. That's where we stand right now at the nasdaq. …”
Gilead Sciences, Incorporated (GILD) Discussed on CNBC's Squawk On The Street
Gilead Sciences, Incorporated is in the news. Find out how this impacts GILD trading on Ockham Research.
That in fact it did have some revenue growth. Shares up 2.5%. Google is negative this morning. Also want you to pay attention to some of these earnings beats we've seen today because there are sizable gains from GILEAD, united airlines, the parent company there, and then san mena. The biggest winner out of the earnings beats this morning at nasdaq up 16.5%. That stock trading sharply to the upside. Wynn resorts a mover to the downside though the target was
“… Also want you to pay attention to some of these earnings beats we've seen today because there are sizable gains from GILEAD, united airlines, the parent company there, and then ... …”
Earnings News Regarding Gilead Sciences, Incorporated Noted on Seeking Alpha Wall St Breakfast
We thought our clients would like to be aware of a news story involving GILD's earnings per share.
The Motley Fool CAPS data suggests that investors believe Gilead Sciences, Incorporated will beat the market in the foreseeable future. We consider GILD as Undervalued at the current price of $44.87. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Gilead Sciences, Incorporated has been talked about more than normal recently.
“… (PR) GILEAD SCIENCES (GILD): Q4 EPS of $0. 93 beats by $0. 08. Revenue of $2B (+42%) vs. $1. 9B. (PR) Integrated Device Technology (IDTI): FQ3 EPS of $0. 10 beats by $0. 01. …”
Closing Bell Has News on GILD
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on GILD from Closing Bell.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Gilead Sciences, Incorporated has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on GILD, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… check out GILEAD. Looks to be 2% higher. Record fourth quarter and full year for 2009. 93 cents a share comfortably above 85 cent estimate. …”