With its booming double-digit growth and sweet quarterly surprises, Gilead will cure your fear of commitment to biotechnology stocks in no time.
One of the world's leading makers of AIDS medications, Gilead caught our attention when it posted fourth-quarter sales that were up 42% from a year ago after better than expected sales of its most popular HIV drug, Atripla.
Hamed Khorsand, an analyst at BWS Financial, said Gilead has "the safest and most effective treatment for HIV" and that should continue to fuel growth.
After its record fourth quarter earnings, Gilead raised its sales forecast and now expects growth of 17% to 19% from 2009.
And what's more attractive than a little self-confidence? Because of Gilead's healthy cash flow, the company said it will buy back up to $1 billion of its common stock in the next year.
Best of all, Gilead is a cheap date considering its impressive balance sheet and consistent growth. The company's stock is trading at 13 times its estimated 2010 earnings per share, right in line with the industry average.
--Blake Ellis
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