Major U.S. indices have recovered from the lows hit in March due to the coronavirus outbreak and are now up year to date. Nasdaq is trading at a record high.
Though the coronavirus pandemic significantly hurt economic growth, the impact on the biotech sector has been relatively softer. In fact, all eyes are on this sector to find a cure/vaccine for the deadly COVID-19 disease and bring an end to the global economic catastrophe.
The Zacks Medical-Biomedical and Genetics industry has risen 2.4% so far this year against the broader Medical sector’s decrease of 1%. Moreover, the Medical-Biomedical and Genetics industry has risen 27.2% since mid-March when the coronavirus crisis began.
The upside in biotech sector has been led by positive developments at small companies, primarily the ones developing a vaccine or treatment for coronavirus. Biotechs developing a vaccine or treatment for COVID-19 are attracting significant amount of funding. Shares of these vaccine-makers have witnessed sizable gains as funding has boosted their cash position as well as on hopes that a successful development will likely lead to significant amount of revenues.
Apart from companies developing a coronavirus vaccine or therapy, a few other biotechs also hold potential on the strength of their fundamentals. Successful innovation resulting in new drug approvals, important advances in clinical studies and strategic collaborations with strong partners have kept these companies afloat despite the pandemic.
4 Biotech Stocks to Buy
Here we discuss four biotech stocks, which can cushion your portfolio to a certain extent.
These four stocks carry a Zacks #1 Rank (Strong Buy) or #2 (Buy) and have witnessed share price appreciation and positive estimate revisions in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent Biosolutions Inc. EBS
Emergent Biosolutions sports a Zacks Rank #1. The Zacks Consensus Estimate for earnings has moved up 23.9% for 2020 and 25.7% for 2021 in the past 60 days. Shares have surged 91.5% so far this year.
Horizon Therapeutics HZNP
Another Zacks Rank #1 company, Horizon Therapeutics’ shares are up 114.6% year to date. The Zacks Consensus Estimate for earnings has moved north by 43% for 2020 and 42.3% for 2021 in the past 60 days.
BeiGene, Ltd. BGNE
BeiGene carries a Zacks Rank #2. The Zacks Consensus Estimate for loss has narrowed 12.5% for 2020 and 18.6% for 2021 in the past 60 days. Shares of the company have increased 72.8% so far this year.
Repligen Corporation RGEN
Repligen is a Zacks Rank #2 company. The Zacks Consensus Estimate for earnings has moved north 4.1% for 2020 and 2.2% for 2021 in the past 60 days. The company’s shares have increased 59.5% so far this year.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Emergent Biosolutions Inc. (EBS): Free Stock Analysis Report
Horizon Therapeutics Public Limited Company (HZNP): Free Stock Analysis Report
Repligen Corporation (RGEN): Free Stock Analysis Report
BeiGene, Ltd. (BGNE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research