01-21-2020, 04:56 PM
(01-17-2020, 02:43 PM)stockguru Wrote: Anyone own GILD? Just was wondering your thoughts? Looks cheap but it may be cheap for a reason.
Yes, and I continue to add from time to time at these prices.
![[Image: Rv7CRbn.png]](https://i.imgur.com/Rv7CRbn.png)
Currently selling below (8.96 P/E using FAST Graphs' blended basis) its 10yr average P/E of 10.83. Even with forecast flat to negative earnings growth through year-end 2021, selling well below its implied value of $72.05 by year-end 2021 at a P/E of 10.83.
The real question is whether GILD can find some catalyst to stabilize/grow its earnings again, as it is earnings growth that ultimately supports dividend growth. Dividend does not look to be in trouble based on present forecasts, and is well covered by existing earnings, and even forecast declining earnings.