We recently compiled a list of the Jim Cramer Talked About These 8 Stocks. In this article, we are going to take a look at where Gilead Sciences, Inc. (NASDAQ:GILD) stands against the other stocks Jim Cramer talked about.
Jim Cramer, host of Mad Money, recently shared some investment wisdom drawn from his four decades of experience. One of the key lessons he emphasized during the show was the importance of discipline in investing. Cramer was firm on this principle, saying that no matter how much someone may love a stock or be captivated by its story, if the rules dictate that it’s time to sell, then it’s time to sell. He reminded his audience that discipline is more important than sheer conviction when it comes to managing investments.
“We’re gonna start with the first one, which is bulls make money. Bears make money. Pigs, well, they get slaughtered. Look, I say this all the time… because so often in my business, I’ve seen moments where stocks went up and up and up so much that people were intoxicated with their gains… However, it’s precisely at that point of intoxication that you need to remind yourself that you don’t want to act like a pig.”
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Cramer also stressed that one of the toughest aspects of investing is simply enduring the ups and downs of the market.
“You know that’s the hardest part of investing. It’s holding on through the difficult periods, taking short-term pains so you can have long-term gains, which is what’s happened in the stock market for a century.”
The next rule Cramer shared revolves around the fear of paying taxes on stock market gains. He pointed out that many investors develop a near-obsessive aversion to paying taxes and often avoid taking profits because they don’t want to incur tax liabilities. However, Cramer argued that it’s perfectly okay to pay taxes if it means securing gains.
Lastly, Cramer advised against buying or selling a stock all at once. He recommended spreading purchases over time in stages, as this approach accounts for the potential fallibility of judgment and helps secure the best price.
“… My next commandment and this is a really important one. Never buy all at once. I can’t stress it enough. Do not, under any circumstances, buy your whole position at once… and you should never sell all at once. Instead, I need you to stage your buys, work your orders, try to get the best price over time.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episodes of Mad Money. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A physician and a patient having a discussion in a hospital about biopharmaceutical medicines.
Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 59
Cramer said to take profits in Gilead Sciences, Inc. (NASDAQ:GILD) and commented:
“Okay, Gilead Sciences is a company that I think has been, the stock has come back and that’s terrific, but I don’t think the business is worth as much as the stock is selling. I would take profits in that stock tomorrow morning.”
Gilead Sciences (NASDAQ:GILD) is a biopharmaceutical company focused on developing and commercializing innovative medicines. In the third quarter, it reported strong financial results, surpassing analysts’ expectations with a 7% increase in revenue compared to the previous year. This growth was primarily driven by solid sales of its HIV and oncology treatments. The company also made significant progress in its virology and inflammation programs during the quarter.
The company is focused on maintaining its leadership in the HIV treatment market, anticipating the introduction of four new regimens by the end of 2030. Management mentioned that the HIV treatment market is expected to continue growing at a rate of 2 to 3% annually, aligning with the company’s expectations. One key development in the quarter was that the FDA granted breakthrough therapy designation to lenacapavir, an HIV treatment.
If approved, lenacapavir will become the first twice-yearly subcutaneous injection for HIV prevention. The company is on track to file for approval before the end of the year. In addition to its HIV advancements, Gilead Sciences (NASDAQ:GILD) also received FDA-accelerated approval for Livdelzi, a treatment for primary biliary cholangitis, in the third quarter.
This approval brings the total number of innovative therapies launched by Gilead since 2019 to six, marking progress toward the company’s goal of introducing at least 10 transformative therapies by 2030. Furthermore, on December 17, the company announced that the FDA had granted Breakthrough Therapy Designation to Trodelvy for the treatment of extensive-stage small cell lung cancer, further expanding its oncology portfolio.
Overall GILD ranks 4th on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of GILD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GILD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
