Shares of Gilead Sciences, Inc. (NASDAQ:GILD) are currently trading around $77. Although the S&P 500’s been soaring more than 15% in the past three months, Gilead’s stock has tumbled more than 5% during that same period.
The company’s remdesivir drug has shown effectiveness in treating COVID-19 patients but, unfortunately, it hasn’t been the definitive solution to stop the disease in its tracks. And with vaccine stocks making progress and reporting encouraging results, there’s a lot more hype surrounding those investments than there is about a company like Gilead that’s had some mildly impressive results with remdesivir thus far.
However, the drug’s still in demand and hospitals are even running low on it. That’s a good sign as it suggests medical professionals are still optimistic that it could help. And that’s why investing in Gilead today could be a good move as demand for remdesivir remains strong.
Currently trading at about 20 times earnings, Gilead’s stock isn’t an expensive buy. If remdesivir can inject the company’s financials with some even stronger numbers, Gilead’s stock could quickly take off. The company releases its second-quarter results later this month, on July 30.
All hope isn’t lost on remdesivir and with the stock trading at a reasonable valuation and paying a dividend of 3.5%, it’s fairly safe to buy shares of Gilead today. Even if remdesivir disappoints, investors are still left with a good healthcare stock to hang on to for years. And if remdesivir does well, the sky could be the limit for Gilead.