Gilead Sciences is trading in a bullish trend and several arguments are in favor of the continuation of this trend.
From a fundamental viewpoint, the company is strong. The Thomson Reuters consensus regularly revised upward sales and EPS estimates of the company for the next two years. The YM Biosciences acquisition in 2013 permits the group to considerably improve its sales and earnings. Thanks to this event, EPS should rise from USD 1.81 in 2013 to USD 7.33 in 2014. Moreover, the company benefits from attractive valuation levels compared to its peers, with a P/E ratio at 14.7x for the current fiscal year.
Technical patterns are in the green: prices are up for several months, and the stock follows a bullish trend as shown by the trendline. Prices are currently testing their USD 107.5 midterm resistance, and the crossing of this threshold would be a bullish signal. The moving averages' orientation, particularly the 20-day one should help to reach the USD 119 long term resistance.
According to both technical and fundamental elements, it seems opportune to take a long position at the current price. The bullish trend should allow the security to reach the USD 119 resistance. If the stock crosses it, a new target price will be set. A stop loss will be placed under the entry point to avoid a downtrend.