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Best Biotech Stocks to Buy Now as AI Stocks Tank: ARGX

Key Takeaways

  • Argenx is projected to nearly double its sales between 2025 and 2027.
  • ARGX is expected to expand its EPS by 80% from FY25 to FY27 after ~700% growth last year.
  • The biopharmaceutical is expanding its blockbuster drug across multiple autoimmune diseases.
  • The stock soared ~4,100% since its 2017 U.S. IPO. Yet it offers great value, growth, and breakout potential.

Investors should consider buying resurgent healthcare and biotech stocks as they surge amid the AI selloff.

Today we are digging into why it might be time to buy biopharmaceutical stock Argenx ARGX in particular.

Buy Healthcare and Biotech Stocks as AI Stocks Tank?

Healthcare stocks are rallying as investors dump technology stocks and artificial intelligence names as third-quarter earnings season ramps up and AI bubble concerns mount. The rotation makes sense considering that AI-boosted stocks skyrocketed over the last few years.

The AI selloff could continue in the final two months of 2026, based simply on the laws of market gravity. For instance, despite falling over 30% from its June peaks, the AI-boosted iShares Semiconductor ETF (SOXX) has climbed ~190% in the past three years.

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Image Source: Zacks Investment Research

The semiconductor ETF tanked below its 200-day moving average midweek, down 3.1% on Wednesday.

Meanwhile, the State Street SPDR S&P Biotech ETF ((XBI - Free Report) ) climbed 2.7% to move above its 50-day, and the State Street Health Care Select Sector SPDR ETF ((XLV - Free Report) ) jumped ~3.1% to new all-time highs.

History shows that the healthcare sector has often outperformed for years after previous boom-and-bust cycles faded. Goldman Sachs recently pointed to long-term stretches from 2003 to 2007 and from 2013 to 2015 as useful examples.

Buy Biotech Stock ARGX for Value, Growth, and Long-Term Upside

Argenx (ARGX - Free Report)  is a Netherlands-based biopharmaceutical company growing its earnings and revenue at impressive rates as its flagship autoimmune disease drug Vyvgart shines.

ARGX is also vitally looking to expand its blockbuster drug across multiple autoimmune diseases.

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Image Source: Zacks Investment Research

ARGX’s autoimmune drug Vyvgart reached blockbuster status—a prescription medication that generates at least $1 billion in annual global sales—in its second full year on the market.

The biotech stock grew its global product revenue by 54% YoY in Q3, driven by Vyvgart, which is used to help treat gMG (generalized Myasthenia Gravis) and CIDP (Chronic Inflammatory Demyelinating Polyneuropathy).

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Image Source: Zacks Investment Research

The firm is actively pursuing new indications for Vyvgart and adding to its pipeline via its $2.2 billion acquisition of Forte Biosciences, which closed in late August. Argenx confirmed when it reported its Q3 results in late October that it remains on a clear path to completing its Vision 2030 initiative.

ARGX’s longer-term plan is centered around treating 50,000 patients globally by 2030 and securing “10 labeled indications” for Vyvgart, up from three right now. ARGX also aims to “progress five pipeline candidates into registrational development by 2030.”

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ARGX is projected to grow its revenue by 51% in 2026 and another 24% next year, climbing from $4.25 billion in 2025 to $7.92 billion in 2027. This growth outlook follows 89% sales expansion in 2025 and 78% in 2024 ($2.25 billion).

Argenx is expected to grow its adjusted earnings by 47% in 2026 and 22% next year to hit $35.33 a share vs. $19.57 in 2025. Looking ahead, Argenx will be able to pursue more strategic acquisitions and expansion efforts because of its pristine debt-free balance sheet.

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Image Source: Zacks Investment Research

ARGX stock has skyrocketed ~4,100% since its 2017 U.S. IPO. It has cooled off recently, roughly matching the S&P 500 in the past 12 months.

The stock is still down ~13% from its August records after finding buyers at its long-term 50-week moving average. Argenx is currently attempting to overtake its 50-day moving average.

On top of that, it’s trading at 26.3X forward 12-month earnings, marking a significant discount to its 37.5X this time last year and ~75% value vs. Argenx’s November 2024 levels.

The biopharmaceutical stock is also trading at a 35% discount to its industry, even though the Medical - Biomedical and Genetics group has dropped 24% in the last five years as ARGX surged ~190%.

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