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5 Biotech Stocks Up More Than 100% This Year So Far
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The Zacks Medical-Biomedical and Genetics industry consists of several large as well as small pharma companies. The larger companies, which hold the majority of the industry’s market capitalization, have a strong portfolio of commercial drugs and pipeline candidates. These companies also boast a strong balance sheet and a steady stream of revenues. However, the majority of the companies in the sector are small with a few to no marketed drugs. Most of these companies are in development-stage especially with focus on diseases, which are rare to treat or have significant unmet need like fatty liver, uncommon cancer indications and others.
Some of these clinical stage biotech companies are dependent on just one pipeline candidate. Consequently, the success or failure of their key pipeline candidates in clinical studies affects a stock’s price. These stocks are also affected by a partnership deal or the loss of one with a big pharma company as the latter provides significant funding for research.
The Zacks Medical-Biomedical and Genetics industry has risen 1.4% so far this year, outperforming the broader Medical market’s increase of 0.5%. Moreover, the Medical-Biomedical and Genetics industry has risen 26.5% since mid-March amid the coronavirus crisis.
The upside in biotech sector has been led by the small companies, primarily the ones developing a vaccine for coronavirus. Shares of some companies developing coronavirus vaccine candidates have witnessed sizable gains on hopes that a successful development will likely lead to significant amount of revenues amid the pandemic. Some among them are solely focused on developing the vaccine with no other pipeline candidates. Moreover, biotechs developing a vaccine against COVID-19 are also attracting significant amount of funding from governments across the world and other public as well as private organizations to support development. Meanwhile, a few large-cap companies like Pfizer, Sanofi and Glaxo have also collaborated with small biotechs in search of a vaccine, which boosted their stock prices.
Please note that Moderna, Pfizer and, AstraZeneca are leading names involved in developing a vaccine. Emergent Biosolutions is one of the companies leading the race of companies providing manufacturing services to vaccine makers.
Apart from coronavirus-related developments, a few companies have surged on the back of encouraging progress with their pipeline candidates, especially for oncology indications.
Stocks That Outperformed
Here we have zeroed in on five biotech companies, which have risen more than 100% so far this year and witnessed positive earnings estimate revisions. These stocks either sport a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent Biosolutions sports a Zacks Rank #1. The company surpassed earnings estimates in three of the last four reported quarters and missed the same once with the average beat being 127.41%. The Zacks Consensus Estimate for earnings has moved up 56.4% for 2020 in the past 30 days. Shares of the company have rallied 137.3% so far in 2020.
Horizon Therapeutics
Another Zacks Rank #1 company, Horizon Therapeutics surpassed earnings estimates in all the last four reported quarters with the average beat being 38.63%. The Zacks Consensus Estimate for earnings has moved north by 51.3% for 2020 in the past 30 days. Shares of the company have rallied 108.1% year to date.
Novavax is a Zacks Rank #2 company. The four-quarter average earnings beat is 13.8%. The Zacks Consensus Estimate for earnings has increased 34% for 2020 in the past 30 days. Shares of the company have rallied 3357.8% so far this year.
Celldex surpassed earnings estimates in two of the past four quarters with the average beat being 10.8%. The Zacks Consensus Estimate for loss has narrowed 42.7% for 2020 in the past 30 days. Shares of the company have rallied 392.8% year to date. The company carries a Zacks Rank #2.
Aileron carries a Zacks Rank #2. The Zacks Consensus Estimate for loss has narrowed 4.5% for 2020 in the past 30 days. Shares of the company have rallied 114.7% so far in 2020.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
5 Biotech Stocks Up More Than 100% This Year So Far
The Zacks Medical-Biomedical and Genetics industry consists of several large as well as small pharma companies. The larger companies, which hold the majority of the industry’s market capitalization, have a strong portfolio of commercial drugs and pipeline candidates. These companies also boast a strong balance sheet and a steady stream of revenues. However, the majority of the companies in the sector are small with a few to no marketed drugs. Most of these companies are in development-stage especially with focus on diseases, which are rare to treat or have significant unmet need like fatty liver, uncommon cancer indications and others.
Some of these clinical stage biotech companies are dependent on just one pipeline candidate. Consequently, the success or failure of their key pipeline candidates in clinical studies affects a stock’s price. These stocks are also affected by a partnership deal or the loss of one with a big pharma company as the latter provides significant funding for research.
The Zacks Medical-Biomedical and Genetics industry has risen 1.4% so far this year, outperforming the broader Medical market’s increase of 0.5%. Moreover, the Medical-Biomedical and Genetics industry has risen 26.5% since mid-March amid the coronavirus crisis.
The upside in biotech sector has been led by the small companies, primarily the ones developing a vaccine for coronavirus. Shares of some companies developing coronavirus vaccine candidates have witnessed sizable gains on hopes that a successful development will likely lead to significant amount of revenues amid the pandemic. Some among them are solely focused on developing the vaccine with no other pipeline candidates. Moreover, biotechs developing a vaccine against COVID-19 are also attracting significant amount of funding from governments across the world and other public as well as private organizations to support development. Meanwhile, a few large-cap companies like Pfizer, Sanofi and Glaxo have also collaborated with small biotechs in search of a vaccine, which boosted their stock prices.
Please note that Moderna, Pfizer and, AstraZeneca are leading names involved in developing a vaccine. Emergent Biosolutions is one of the companies leading the race of companies providing manufacturing services to vaccine makers.
Apart from coronavirus-related developments, a few companies have surged on the back of encouraging progress with their pipeline candidates, especially for oncology indications.
Stocks That Outperformed
Here we have zeroed in on five biotech companies, which have risen more than 100% so far this year and witnessed positive earnings estimate revisions. These stocks either sport a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent Biosolutions Inc. (EBS - Free Report)
Emergent Biosolutions sports a Zacks Rank #1. The company surpassed earnings estimates in three of the last four reported quarters and missed the same once with the average beat being 127.41%. The Zacks Consensus Estimate for earnings has moved up 56.4% for 2020 in the past 30 days. Shares of the company have rallied 137.3% so far in 2020.
Horizon Therapeutics
Another Zacks Rank #1 company, Horizon Therapeutics surpassed earnings estimates in all the last four reported quarters with the average beat being 38.63%. The Zacks Consensus Estimate for earnings has moved north by 51.3% for 2020 in the past 30 days. Shares of the company have rallied 108.1% year to date.
Novavax, Inc. (NVAX - Free Report)
Novavax is a Zacks Rank #2 company. The four-quarter average earnings beat is 13.8%. The Zacks Consensus Estimate for earnings has increased 34% for 2020 in the past 30 days. Shares of the company have rallied 3357.8% so far this year.
Celldex Therapeutics, Inc. (CLDX - Free Report)
Celldex surpassed earnings estimates in two of the past four quarters with the average beat being 10.8%. The Zacks Consensus Estimate for loss has narrowed 42.7% for 2020 in the past 30 days. Shares of the company have rallied 392.8% year to date. The company carries a Zacks Rank #2.
Aileron Therapeutics, Inc. (ALRN - Free Report)
Aileron carries a Zacks Rank #2. The Zacks Consensus Estimate for loss has narrowed 4.5% for 2020 in the past 30 days. Shares of the company have rallied 114.7% so far in 2020.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>