After a bullish move of more than 11% in April, the Dow Jones and S&P 500 recorded their best month in 33 years. But the bullish momentum faded in May as Wall Street indexes closed in the red. Last month we saw a major hike in tech stocks due to the huge demand for the services & products the companies have offered. Now, investors have been looking to keep track of Pharma stocks.
All the Pharma giants have been testing and developing vaccines and kits to fight the COVID-19. According to historical charts, Pharma stocks have dropped 21% so far this year. Still, there be a high possibility that the sector might outperform in the upcoming months.
The Dow Jones U.S. Pharmaceuticals Index clearly shows how the sector performed in the last 3 years. The index has been trading in the range-bound zone, moving to and fro from 500 to 600 points. The data shows that pharma stocks have been in the same position for decades, however, COVID-19 might open doors for the investors and the government to increase cash flow to this sector.
Is Gilead Science Stock a Good Buy?
Gilead Science is a well known American Biopharma company that focuses mainly on antiviral drugs. The company has a previous track record of developing antiviral drugs that are used to treat HIV, hepatitis B, and C and influenza.
According to FT, the trial of the drug “remdesivir” has shown a positive effect in treating coronavirus patients. Gilead Science might be able to help patients infected form a disease. The company believes it can produce 1 million courses of treatment by the year-end.
The current Gilead Sciences Inc (GILD) share price is $76.73 with a volume of 2.51k (press time). The company has a market cap of 105.76 Billion and a PE ratio of 20.16.
The above graph clearly suggests that the stock is in a bullish trend and constantly hitting its all-time high. The technical charts using MACD and Moving averages show a clear signal that GILD might move above the $85 mark in the upcoming days. Investors who are looking for long-term investments could hold this stock for the long term.
1 Year Price Target: $90- $95 per share
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