Why Gilead Sciences (GILD) Stock is a Compelling Investment Case

Tao Value recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 7.08% for the quarter, underperforming its benchmark, the MSCI All Country World Index (ACWI) which returned 8.41% in the same quarter. You should check out Tao Value’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Tao Value highlighted a few stocks and Gilead Sciences Inc (NASDAQ:GILD) is one of them. Gilead Sciences Inc (NASDAQ:GILD) is a biotechnology company. Year-to-date, Gilead Sciences Inc (NASDAQ:GILD) stock lost 9.7% and on October 27th it had a closing price of $60.01. Here is what Tao Value said:

“On the detracting side, our largest detractor is Gilead Sciences (ticker: GILD), which dragged 104 bps. Gilead reported a lackluster Q2, falling short of earning estimate by relatively large margin. It however it raised its full year revenue and earning guidance, possibly due to incremental Remdesivir revenue in 2nd half year. Gilead also announced a big acquisition of Immunomedics for $21 billion. Through this acquisition, Gilead will add Immunomedics’ crown asset Trodelvy to its oncology pipeline and expect it could be significantly accretive to earnings since 2023. The share price decline might be due to COVID19 themed traders seek exit after a good run. I didn’t see changes to our original thesis.”

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Last month, we published an article revealing that biotech stocks are poised for massive future growth.

In Q2 2020, the number of bullish hedge fund positions on Gilead Sciences Inc (NASDAQ:GILD) stock decreased by about 11% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Gilead’s growth potential. Our calculations showed that Gilead Sciences Inc (NASDAQ:GILD) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.