One biotech stock could be best bet in the race for curing coronavirus

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How these experts are investing in biotech amid coronavirus outbreak

Gilead Sciences could be the best positioned biotech stock here.

That's according to Mark Newton, founder of Newton Advisors, who says the biotech company looks technically attractive as it works toward a cure for the new coronavirus.

"Gilead broke out last week. Gilead Sciences is up to new six-week highs on an explosion of volume last week. We saw the call open interest jump over 88%," Newton said Monday on CNBC's "Trading Nation."

"This stock had been going down and had been cut in half really since 2015 then moving sideways," said Newton. "This little breakout last week is very interesting to me technically from a risk-reward standpoint."

Newton said the shares could see an additional boost given the company is at the forefront of coronavirus treatment testing. China began a clinical trial of Gilead's antiviral treatment remdesivir in the country last week.

"I like Gilead and I would own it and look to buy any weakness," said Newton.

In the same interview, Joule Financial President Quint Tatro said the fundamentals back up the bull case for Gilead.

"I was really surprised when I started digging into Gilead just today — surprised so much that I had to pick up some shares for our firm today," Tatro said. "The stock is trading 11 times forward [earnings] and has very impressive earnings growth, and most importantly ... is generating over $6 a share in free cash flow with a 4% dividend."

While Gilead trades at nearly 11 times forward earnings, the IBB biotechnology ETF trades at a far higher 89 times forward multiple.

"From a valuation standpoint, we like this stock quite a bit, started a position, and will be digging in to the [fundamentals] further," said Tatro.

Disclosure: Tatro and Joule Financial hold a position in Gilead.

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