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Why These 4 Biotech Stocks May Not Lose Momentum Soon
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Within the Medical sector, biotech stocks have performed well so far this year. The pharma and biotech industry has demonstrated strength during the period despite challenges like rising competition, pipeline setbacks, slowdown in growth of mature products and generic competition for certain key drugs. Although drug pricing risk persists, investors are seemingly comfortable with the scenario and are focused on the fundamentals.
A lot of factors were responsible for the recovery of the sector this year and are expected to lead to its sustained recovery. These include new product sales ramp up, R&D success and innovation, strong clinical study results, regular FDA approvals and continued strong performance of legacy products. Moreover, tax reforms as well as cash repatriation supported the recovery as well.
The NASDAQ Biotechnology Index is up 26.1% YTD after sliding 19.1% in 2016.
In fact, the Zacks Medical-Biomed and Genetics sector is up 10.3% YTD, having outpaced the 8.3% gain for the S&P 500.
A Look at the Fundamentals
Despite the rally, it’s hard to find value in this space, as stocks with solid future prospects have already appreciated significantly. But as the momentum is likely to continue for some time, it’s a good idea to pick a few stocks that are unlikely to lose their momentum soon.
4 Biotech Stocks to Buy Now
We have taken the help of the Zacks Stock Screener to select the stocks. To shortlist the stocks from the vast universe of biotech sector, we have picked stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Momentum Score of A.
We have also taken into consideration a few more criteria to select the stocks. These include better returns than the industry this year, upward estimate revisions of more than 5% and average daily volume of more than 20,000. Our research shows that stocks with this combination offer the best upside potential.
Here are four stocks that fulfilled these criteria:
Caladrius Biosciences, Inc. is a biopharmaceutical company active in the field of stem cell therapy. It carries a Zacks Rank #2 (Buy). Shares of the company have gained 41% year to date, outperforming the 15.7% increase recorded by its industry. Also, the Zacks Consensus Estimate for 2018 has improved by 7.2% over the last 60 days.
Orexigen Therapeutics, Inc. is a pharmaceutical company that is mainly associated with development of treatments for obesity. It carries a Zacks Rank of #2. Shares of the company have gained 32.8% year to date, outperforming the industry. Further, its Zacks Consensus Estimate for the current year has improved 6.1% over the last 60 days.
Sangamo Therapeutics, Inc. (SGMO - Free Report) is a biopharmaceutical company associated with developing technologies in gene therapy. It also carries a Zacks Rank #2. Shares of the company have gained a massive 341% year to date, significantly outperforming the industry. In addition, the Zacks Consensus Estimate for the current year moved north by 8.6% and by 23.1% for 2018 over the last 60 days.
Syndax Pharmaceuticals, Inc. (SNDX - Free Report) is a clinical stage biopharmaceutical company, which carries a Zacks Rank #2. Shares of the company have gained 74.1% year to date, outperforming the industry. Moreover, the Zacks Consensus Estimate for the current year and 2018 has improved 14.3% and 16%, respectively over the last 60 days.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Why These 4 Biotech Stocks May Not Lose Momentum Soon
Within the Medical sector, biotech stocks have performed well so far this year. The pharma and biotech industry has demonstrated strength during the period despite challenges like rising competition, pipeline setbacks, slowdown in growth of mature products and generic competition for certain key drugs. Although drug pricing risk persists, investors are seemingly comfortable with the scenario and are focused on the fundamentals.
A lot of factors were responsible for the recovery of the sector this year and are expected to lead to its sustained recovery. These include new product sales ramp up, R&D success and innovation, strong clinical study results, regular FDA approvals and continued strong performance of legacy products. Moreover, tax reforms as well as cash repatriation supported the recovery as well.
The NASDAQ Biotechnology Index is up 26.1% YTD after sliding 19.1% in 2016.
In fact, the Zacks Medical-Biomed and Genetics sector is up 10.3% YTD, having outpaced the 8.3% gain for the S&P 500.
A Look at the Fundamentals
Despite the rally, it’s hard to find value in this space, as stocks with solid future prospects have already appreciated significantly. But as the momentum is likely to continue for some time, it’s a good idea to pick a few stocks that are unlikely to lose their momentum soon.
4 Biotech Stocks to Buy Now
We have taken the help of the Zacks Stock Screener to select the stocks. To shortlist the stocks from the vast universe of biotech sector, we have picked stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Momentum Score of A.
We have also taken into consideration a few more criteria to select the stocks. These include better returns than the industry this year, upward estimate revisions of more than 5% and average daily volume of more than 20,000. Our research shows that stocks with this combination offer the best upside potential.
Here are four stocks that fulfilled these criteria:
Caladrius Biosciences, Inc. is a biopharmaceutical company active in the field of stem cell therapy. It carries a Zacks Rank #2 (Buy). Shares of the company have gained 41% year to date, outperforming the 15.7% increase recorded by its industry. Also, the Zacks Consensus Estimate for 2018 has improved by 7.2% over the last 60 days.
Caladrius Biosciences, Inc. Price
Caladrius Biosciences, Inc. Price | Caladrius Biosciences, Inc. Quote
Orexigen Therapeutics, Inc. is a pharmaceutical company that is mainly associated with development of treatments for obesity. It carries a Zacks Rank of #2. Shares of the company have gained 32.8% year to date, outperforming the industry. Further, its Zacks Consensus Estimate for the current year has improved 6.1% over the last 60 days.
Orexigen Therapeutics, Inc. Price
Orexigen Therapeutics, Inc. Price | Orexigen Therapeutics, Inc. Quote
Sangamo Therapeutics, Inc. (SGMO - Free Report) is a biopharmaceutical company associated with developing technologies in gene therapy. It also carries a Zacks Rank #2. Shares of the company have gained a massive 341% year to date, significantly outperforming the industry. In addition, the Zacks Consensus Estimate for the current year moved north by 8.6% and by 23.1% for 2018 over the last 60 days.
Sangamo Therapeutics, Inc. Price
Sangamo Therapeutics, Inc. Price | Sangamo Therapeutics, Inc. Quote
Syndax Pharmaceuticals, Inc. (SNDX - Free Report) is a clinical stage biopharmaceutical company, which carries a Zacks Rank #2. Shares of the company have gained 74.1% year to date, outperforming the industry. Moreover, the Zacks Consensus Estimate for the current year and 2018 has improved 14.3% and 16%, respectively over the last 60 days.
Syndax Pharmaceuticals, Inc. Price
Syndax Pharmaceuticals, Inc. Price | Syndax Pharmaceuticals, Inc. Quote
You can see the complete list of today’s Zacks #1 Rank stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>