This week started off with the Dow dropping 1031 points over corona virus fears. We didn’t put out any new recommendations as day’s like yesterdays are not for the feint of heart. Best off waiting for the dust to settle and then go looking for bargains.
$WBA is trading at major long-term support levels around the $49 level. Besides the technical picture, the fundamentals are also supportive of a LONG position in $WBA. $WBA is trading at just 8x this year’s , 0.32x sales, and 14.85x FCF . We are also on its competitor $RAD, which we’ve written up in the past.
$GILD has been stuck in the $63 to $70 range for over a year. After yesterday’s significant breakout, look for $GILD to keep climbing. Contributing to yesterday’s breakout was the news that a World Health Organization official comments that the company’s experimental drug may be the best candidate to treat the new coronavirus that’s spreading globally.
Gilead’s remdesivir is the “one drug right now that we think may have efficacy,” Bruce Aylward, an assistant director-general at the World Health Organization, said at a briefing in Beijing.
The compound has been advanced to clinical trial in China. WHO said results may be available within weeks.
$GILD looks to be a smart play in the current environment.
As always, trade with caution and use protective stops.
Good luck to all!
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Disclosure: At the time of this writing, we have no positions in any of the stocks mentioned. We are not financial advisors. Please read our full disclaimer for more information.