5 Best Depressed Stocks To Buy in 2024

3. Gilead Sciences, Inc. (NASDAQ:GILD)

Number of Hedge Fund Investors: 55

Despite having lost about 16% over the past one year, Gilead Sciences, Inc. (NASDAQ:GILD) remains one of the most famous stocks among hedge funds. Insider Monkey’s database shows that 55 hedge funds had stakes in Gilead Sciences, Inc. (NASDAQ:GILD) as of the end of 2023.

In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD):

“In the second half of 2023 — as we were selling low-growth, high-multiple stocks and taking advantage of oversold conditions in infrastructure, real estate and utilities — we also found opportunities in overlooked areas of health care. After adding Gilead Sciences, Inc. (NASDAQ:GILD) in the third quarter, we bought AstraZeneca in the fourth quarter. Each of these stocks present distinct investment cases, but both are reasonably valued and have limited patent expiry or pipeline risk. Gilead’s strength comes from its dominant franchise in HIV. It offers lower growth, but it yields nearly 4% and trades at 11x earnings. AstraZeneca possesses a diversified portfolio of pharmaceuticals, which should deliver double-digit earnings growth, yet it trades at just 16x earnings. These stocks were underwritten individually, but collectively we like the idea of increasing our exposure to defensive and growing health care names at below-market multiples.”