Gilead Sciences stock is back on an attractive purshase level, investors should take advantage from this opportunity.
The American biotechnology company displays outstanding fundamentals, with an attractive valuation and a strong profitability (Net margin of 48.8% in 2014). The business has considerable growth potential as underlined by Thomson Reuters estimates: EPS should quadruple this year, from 1.81 dollars in 2013 to 7.28. Furthermore, analysts mostly keep a 'buyer' bias, targetting on average a 30% appreciation potential.
Technically, the security evolves in a bullish trend on the long term. Prices fell recently, and are back now on the USD 89.45 support. A techical rebound seems under construnction near to this threshold, which is likely to bring back the bullish trend on the short term. Moving averages positively oriented on weekly data should support this upsurge.
Therefore, an excellent opportunity arises to buy Gilead Sciences shares on a cheap price in order to benefit from its appreciation potential. The target price will be set at USD 100.3 then USD 114.2 by extension. A stop loss should be placed under the current USD 89.4 support.