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NASH, Allergies and Beauty Stocks: Invest or Not?

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  • (0:15) - What Are The NASH stocks?
  • (3:20) - Investing In Impactful Biotech
  • (6:30) - Top Biotech Sectors To Pay Attention Too
  • (11:20) - Millennial Help Boost The Beauty Stock's
  • (16:15) - Episode Roundup: EW, EXAS, AIMT, SIEN, AGN, EOLS
  •             Podcast@Zacks.com

 

Welcome to Episode #170 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is going solo to discuss the latest biopharmaceutical updates.

Some of them have trendy names like NASH, but others are often not discussed like treatments for peanut allergies and beauty products like breast implants and Botox.

Who is close to getting a new product approved?

And what about investing in those in the largest categories, like heart disease?

These are exciting areas for investors, but there’s still risk.

Should You Invest in the Hot Biopharmaceutical Stocks?

1.       Edwards Lifesciences (EW - Free Report) just broke out to another new high. This giant in the heart disease category isn’t cheap, with a forward P/E of 36, but it’s expected to see double digit earnings growth in both 2019 and 2020.

2.       Exact Sciences (EXAS - Free Report) isn’t expected to see positive earnings in 2019 or 2020 even though sales are soaring for this colon cancer testing company. Sales are expected to be up another 60.2% in 2019 and 47.5% in 2020 though.

3.       Aimmune Therapeutics develops treatments for life threatening food allergies, including peanut and egg allergies. The BLA for AR101 has been submitted to the FDA for treatment of the peanut allergy in children and adolescents ages 4-17. It was the first company to pass a Phase 3 study for peanuts. It also has a Phase 2 for egg allergies that is ongoing.

4.       Allergan is the king of Botox. Last year, that product generated over $3.5 billion in revenue. And customers are getting younger and younger thanks to the pressure to appear a certain way in selfies on Instagram and Snap. But Botox, and Allergan’s filler product, Juvederm, face competition. Shares are trading at just 9.2x as analysts are wondering where future growth is going to come from.

5.       Evolus (EOLS - Free Report) is the Allergan threat. On Feb 1, it got FDA approval for Jeuveau for frown lines. While earnings are expected to be a loss of $3.25 in 2019, they improve to a loss of just $1.38 by 2020. Watch for the possibility of European approval, which would greatly increase its market possibilities.

Questions investors should ask is, how much cash does the company have to ride out the approval process on a new drug or treatment?

And how expensive is the sales and marketing going to be if they do get a product to market?

What else should investors know about investing in the latest medical breakthroughs?

Tune into this week’s podcast to find out.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Edwards Lifesciences Corporation (EW) - free report >>

Exact Sciences Corporation (EXAS) - free report >>

Evolus, Inc. (EOLS) - free report >>

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