The stock market is on edge. Inflation is cooling, but the economy is slowing. Everyone is waiting to see what the Fed will do next week… Will they cut rates? If so, by how much?
While most investors are glued to the Fed's every move, a HUGE opportunity is brewing in a sector nobody is talking about: Biotech.
That's right, biotech stocks have been absolutely CRUSHED over the past two years, lagging far behind the rest of the market.
Bryan Bottarelli of Monument Traders Alliance says it best: “With rates so high, a collection of the top biotech stocks has gained only +4.6% annualized over the last 5 years – while the S&P 500 has gained +16%. That’s dramatic under-performance.” [1]
But the tide is about to turn. The Fed is widely expected to cut rates next week. And when they do, it could unleash a tidal wave of buying in the biotech sector.
That's because biotech companies are heavily reliant on funding to fuel their research and development. Lower interest rates will make it cheaper for them to borrow money, giving their operations a huge boost.
And one biotech company, in particular, is set to soar in this new environment…
Gilead Sciences (GILD): The Most Undervalued Biotech Stock in the World?
Gilead Sciences is a global biopharmaceutical company specializing in developing and marketing innovative therapies for life-threatening diseases. They're a leader in HIV and hepatitis C treatments, among other areas.
But here's the thing… Wall Street has been asleep at the wheel with GILD.
The stock has been stuck in neutral for the past few years, trading at a paltry 13 times forward earnings. That's absurdly cheap for a company with Gilead's track record and potential.
As Bryan explains “It could be the cheapest biotech stock on the market right now – which could lead to a nice play headed into a stronger interest-rate environment for biotech stocks.” [1]
I completely agree. GILD is a screaming buy right now. The company has a strong pipeline of new drugs, a rock-solid balance sheet, and a proven management team.
And when the Fed cuts rates next week, it could be the catalyst that sends GILD soaring.
This Could Be Your Last Chance to Buy GILD on the Cheap
I'm convinced that GILD is heading to $160 a share – or higher – in the months ahead. That's more than double its current price.
The Fed's upcoming rate cut could be your last chance to buy GILD before it takes off. Don't miss out on this incredible opportunity.
Add Gilead Sciences (GILD) to your watch list today and be ready to buy before next Wednesday's Fed announcement.
And tomorrow, we'll reveal another stock that could double after the Fed meeting… this time with a surprising play in the housing market. You won't want to miss it.
[1] https://mtatradeoftheday.com/biotech-sector-poised-benefit-fed-rate-cut-cycle/
