For over a decade, I've been tracking what I call the "megatrends of healthcare," which include these forces and drivers...
Boomer power: An aging population living longer means more care is needed into the active 70's and 80s.
Science power: Breakthroughs in genetics and technology are creating new lifesaving and life-enhancing companies as I write.
Earnings power: All that R&D launches innovative products and solutions that forge new channels of sales and profits. And insurers will gladly pay for these innovations before more expensive surgery or disease progression.
M&A power: Big Pharma companies need to keep their pipelines full and avoid the revenue drops created by "patent cliffs."
Playing the M&A game is fun and rewarding, as we've found in the past 3 years with my Healthcare Innovators portfolio where we caught big gains of 98% and 75% in the buyouts of Juno Therapeutics and Bioverativ. I even recommended last year in a special forecast that investors jump into Celgene and Spark Therapeutics, just weeks before Big Pharma came hunting for them both.
But that game is often quite random. So, as you might guess, I'm especially focused on the science and the earnings from the Biotechnology industry. Because as emerging-stage companies pass through the FDA gauntlet of clinical trials with promising new treatments in cell and gene therapy, investors start eyeing the potential sales and driving stock prices higher.
Let's look at three areas in Biotech that I'm most excited about right now...
1) The Genomic Revolution is Data-Driven
You don't exactly think of the gang in white lab coats to be an exciting bunch. But believe me when I say that tens of thousands are very excited to come to work every day during the gold rush of discovery that is going on right now.
Ever since companies like Illumina crushed the cost of sequencing a genome from $10 million to $100 this century, the life sciences has been in a new renaissance. The possibilities for cell and gene therapy make the "to-do" lists of these companies a mile long.
Coincident with this gene hunting power are the capabilities of high-performance computing that can manage and process all the data at lightning speeds.
In 2018, the Nobel prize for medicine was awarded to two scientists who helped create the field of "immuno-oncology," a patient-specific therapy that teaches the body's immune system to fight its own cancer. In this decade, I expect a flurry of new discoveries and treatments to be winning awards and investor attention at unprecedented speeds.
More . . .
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 DNA to literally erase our vulnerability to these diseases.
Senior Stock Strategist Kevin Cook wrote The Century of Biology to help investors profit from 7 stocks with impressive upside potential.
Cook’s recent biotech recommendations include gains of +43%, +83% and +164% in as little as 9 days.¹ The stocks in this report could produce even better returns. Don’t delay: The Century of Biology is only available until Sunday, February 9.
See 7 Breakthrough Stocks Now >>
2) CRISPR: Gene Editing Will Change the World
And the longer-term play in the world of gene therapy is gene editing, courtesy of one of the oldest life forms on the planet. Good, old indestructible bacteria has taught scientists about altering DNA and RNA because that's how bacteria fights off viruses.
This discovery in 2013 by two women scientists, Jennifer Doudna and Emmanuelle Charpentier, is truly the greatest discovery in this "century of biology." Its potential applications are both awesome and eye-opening. Investors and citizens will profit greatly by learning as much as we can, as quickly as possible.
To learn more about CRISPR technology, my latest report has lots of good information explained in simple terms, not the technical jargon of scientific journals.
3) Smart Medicine: Personalize, Predict, Prevent
A step down from those two "big science" trends is one that hits a lot closer to home: detecting disease -- or just its potential -- early. From a variety of new less-invasive cancer tests to diagnosing genetic issues with predictive analytics, we are entering a new era of doctors and patients being more proactive.
And this personalized approach to healthcare fosters new awareness, a sense of control and the power of prevention in ways that physicians used to only dream about.
Until we have all the tools and resources to treat everyone's cancer immediately and successfully, this era of "precision oncology" detection and prevention will be extremely important. Some exciting new companies are even focused on using artificial intelligence (AI) to examine what your best diet is for your genes and your current health.
Once again, data is the new gold of every economic sector and maybe most of all in healthcare.
Fasten Your Seat Belt for the Century of Biology
A fourth area of medical innovation I'm just beginning to explore is involved with Devices and Instruments like robotics, nanotechnology driven by AI, and the possibilities of Elon Musk's "neural lace" brain-computer interface.
It's hard to describe how excited I am about all the scientific discovery and medical innovation coming at us right now. The exponential pace of these discoveries and innovations is going to be mind-blowing. Smart investors will buckle up and learn as much as they can.
An easy way to get stated is to download my just-updated special report called The Century of Biology: 7 Biotech Stocks to Buy Now. I wrote the report to help investors understand and profit from the booming world of Biotech.
Because of the 4 powerful "megatrends of healthcare" I mentioned above, as well as technology like immuno-therapies, precision oncology and CRISPR, the Biotech sector is expected to surge beyond $775 billion in size by 2024.
These breakthroughs are already beginning to change the world, and they can be some of the most exciting holdings in an investor's portfolio. For example, my recent recommendations in this sector include gains of +43%, +83% and +164% gains in as little as 9 days.¹
I'm bullish on the Biotech sector as a whole, but there are 7 specific stocks I believe are poised for particularly strong upside in the coming year.
You'll learn all about these breakthrough stocks in The Century of Biology Special Report. I encourage you to download it now.
But don't delay: the deadline to download this report is midnight Sunday, February 9.
See these Biotech stocks right now >>
Senior Stock Strategist
Kevin, Senior Stock Strategist at Zacks, is a leading expert in biotech and medical stocks. He provides commentary and recommendations for Zacks' investment portfolio, Healthcare Innovators.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors.