Why Gilead Is 'The Apple Of Biotech'
Though its fallen off all-time highs since June 2015, Gilead Sciences, Inc. (NASDAQ: GILD) may have some serious potential.
That's according to Kevin Kelly, CIO of Recon Capital.
On Thursday's PreMarket Prep, Kelly likened Gilead to the biggest stock in the world, calling it "the Apple of biotech."
Kelly likes Gilead's advantageous dividend, judicious M&A activity and core product line of Hepatitis C drugs, which he likened to the iPhone.
"They don't go head over heels for a name, they do their due diligence," he said.
Related Link: Here's Why There's Been A Rush Of Biotech Offerings
Kelly added, "They can do share buyback, which they're doing, and they have a great franchise drug. It's one of those stocks that's being beaten up just because the market sees it solely dependent on Hep C. But given the market volatility you could see them come out and buy another great company and expand a lot of value through that."
Kelly also noted that Gilead has beaten seven of the last eight quarters, both on the top and bottom line.
Gilead traded down 4 percent on Thursday, hitting a daily low of $96.03.
Listen the full interview with Kelly below, and catch PreMarket Prep live every morning from 8-9:35 a.m. ET here.
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