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Gilead's Stock is on Sale: Should You Buy?

Tracey Ryniec and David Bartosiak, Stock Strategists at Zacks Investment Research, discuss the outlook for biotech giant Gilead Sciences Inc. (GILD).

It recently reported earnings that beat the Zacks Consensus Estimate by 12%. It's a Zacks Rank #1 (Strong Buy) stock.

Gilead also did something few companies are doing right now in this economic environment and that is, it raised its dividend by 10%. Additionally, it also announced a $12 billion share repurchase program.

Gilead also has a big cash hoard that it's willing to deploy to fund its M&A activity. Many are expecting at least one big deal in 2016.

But Tracey discusses the dark side to the stock. Earnings have stopped growing and are actually expected to decline this year and next. Is this a red flag?

David also looks at the chart. He sees an area that could be support but if it breaches it, shares could go much lower. Is he a buyer now?

Even with some of the negatives, Tracey and David are still surprisingly upbeat on Gilead's future. Find out why in the video.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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