At a time when many stocks are falling deep into the red, the one place where investors can look for some strong gains is in healthcare. Gilead Sciences, Inc. (NASDAQ:GILD) has risen 11% over the past month as the company has a drug that could potentially help treat the coronavirus.
Gilead’s remdesivir drug has not only been showing progress in potentially treating the virus, it’s been earning high praise from the World Health Organization (WHO) as well. The organization’s Assistant Director General Bruce Aylward stated that "There is only one drug right now that we think may have real efficacy and that's remdesivir."
If remdesivir does prove to be the solution to the coronavirus, Gilead’s stock could skyrocket and produce even greater returns for investors in the short term. The coronavirus is showing no signs of slowing down anytime soon and with more countries dealing with the outbreak, demand for a vaccine or a possible treatment will be through the roof.
Even if the drug doesn’t pan out, however, Gilead is still a solid value buy. Trading at a forward price-to-earnings ratio of 11 and providing investors with a dividend yield of 3.7%, there’s a lot to like about the healthcare stock today.
It could be a good, calculated risk for investors to take on because in the worst-case scenario it remains a formidable long-term investment that pays a dividend. In the best-case scenario, it hits new 52-week highs if remdesivir does prove to be successful in treating patients with the coronavirus.
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