Most investors turn to biotechs when they’re in search of compelling stocks with momentous strategic growth potential. Any firm which employs technology that involves living organisms for creating agricultural or medical products is known as biotech. The S&P Biotech Select Industry Index gained 18 percent over the last decade. Several financial bloggers and analysts believe in the persistence of this trend. However, how do investors know which biotech stocks are set to grow?
As investors, we look for multiple factors rather than any single metric to make the most informed decisions. These factors can be inclusive of insider activity, analyst ratings, news sentiment, as well as, financial blogger opinions. These factors are weighed by the Smart Score metric and then it combines them into a single numerical score with 10 being the highest.
Here an example of a biotech stock which achieved to score a ‘Perfect 10’.
Gilead Sciences Inc. researches develop & commercialize antiviral drugs mainly utilized for the treatment of Hepatitis B, HIV, Hepatitis C & Influenza.
The firm will report its earnings for the second quarter of 2019 on July 30. According to most recent consensus estimations, it is anticipated to see a 2 percent drop in revenue from the prior-year quarter to $5.5bn. EPS is anticipated to be $6.90, up 4 percent as compared to the last year’s. While the revenue projection is bothersome, the firm has made significant efforts to pull off a turnaround.
On 28th of March, Gilead along with its partner, Galapagos NV (GLPG) made an announcement regarding the positive results from its phase III clinical study testing its filgotinib drug for the treatment of rheumatoid arthritis. The study gave a demonstration of the drug’s enhanced efficacy when compared to other treatment options.