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Daily Stock Analysis Archives

DAILY STOCK
ANALYSIS

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Gilead Sciences

Watch the DSA video for Tuesday, January 6, 2009

Highlights from Today's Video

Presented by: Christina Wise

Despite the action in the broader market, some biotechs have done pretty well in recent months. The group is now ranked No. 17. Six months ago it was at No. 43, so it�s been improving. One of the leading stocks in the biotech group is Gilead Sciences. (GILD)

The company develops treatments for a variety of diseases and has 11 products including the anti-flu drug Tamiflu.
Its earnings growth has been spotty -- between 7% and 22% in last 4 quarters. Normally you like to see it hit at least 25%.
Its sales growth has been better.
Analysts expect Gilead�s earnings to rise 17% this year.
The stock seems to have caught the eye of some big, professional investors. Its Accumulation/Distribution Rating is an A- showing the pros are buying.
Mutual funds now own 28% of the company�s shares, while banks own another 13%.

Click To Enlarge

It formed a base over the summer, then tried to break out in August (Point 1). But like many other stocks, it couldn�t fight the market downturn.
Gilead fell into a second base, dropping 38% (Point 2). That�s somewhat steep, but it�s not that unusual given the correction in the broader market.
It�s now worked its way back to within 11% of its old high. Ideally, you want to see if it will pull back to form a handle pattern, which would provide a buy point.
Also watch for volume to pick up as it approaches its old high (Point 3). That tells you big investors are buying the stock. And they have the power to propel it higher.

Click here for today's Gilead Sciences analysis video.

-- Christina Wise

View Current Stock Checkup

Gilead scores some top ratings in Stock Checkup. It carries an A+ Overall Rating, which is the best in its industry group.
Its A+ Fundamental Rating also lands it in the top spot in its group.

Data provided by William O'Neil + Co., Inc. © 2008. All Rights Reserved. All data is updated daily at 1:00 AM Pacific time unless otherwise noted. IBD Stock Checkup Copyright © 2008 Investor's Business Daily, Inc.

Analysis as of market close, Tuesday, January 6, 2009.

     Opinions expressed in the Daily Stock Analysis Feature are based upon the interpretation of available data. The data being presented was obtained or derived from sources believed to be accurate, but Investor's Business Daily cannot and does not guarantee the accuracy of these sources which may be incomplete and/or condensed. The data and information presented is provided for informational purposes only, and is not offered as a basis for trading in securities nor is it offered for that purpose. Users of the Daily Stock Analysis Feature should conduct their own independent investigation before making any investment or business decisions with respect to securities covered by the Daily Stock Analysis Feature. Neither Investor's Business Daily nor any of its data or content providers shall be liable for any errors in the information or delays in its delivery, or for any action taken in reliance thereon.
     Nothing contained herein should be construed as a recommendation to buy or sell any securities. The Daily Stock Analysis Feature is intended for educational purposes only. The facts and opinions stated in the Daily Stock Analysis Feature do not constitute an offer on the part of Investor's Business Daily for the sale or purchase of any securities; nor is any such offer intended or implied.
     Investor's Business Daily is affiliated with a broker/dealer and investment advisor. Its affiliates and employees trade in the types of securities covered by the Daily Stock Analysis Feature. From time to time or presently, the officers, directors and/or shareholders of Investor's Business Daily and its affiliates may own or buy or sell securities mentioned in the Daily Stock Analysis Feature. They may own, buy or sell securities not mentioned in the Daily Stock Analysis Feature.