Brilliant Biotech Worth Considering Adding Now
While the idea of adding exposure to one of the most volatile market sectors during a correction may not sound great on paper, the reality is that investors should view the biotech sector as a sleeping giant poised to wake up in the foreseeable future. week. Many of the strongest biotech companies can generate large core holdings in your portfolio thanks to the combination of strong drugs that generate stable cash flow and new drugs in development that have the potential to be big winners.
The sector as a whole has been very weak over the last few quarters, but there are some strengths in biotech that stand out at the moment. Keep in mind that investing in biotech stocks can not only generate long-term returns but also help improve the quality of healthcare worldwide, making this a great market area to explore.
There’s definitely a chance that we’ll start to see some signs of life from the top biotech stocks this month, which is why we’ve put together a list of the 3 best biotech stocks to buy in March below.
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Regeneron Pharmaceuticals (NASDAQ:REGN)
If you’re interested in biotech stocks that look poised to move higher in March, Regeneron fits the bill. It is a biopharmaceutical company focused on developing treatments for eye diseases, dermatitis, cancer, and rheumatoid arthritis. With several leading drugs like Eyelea along with many interesting candidates in the company’s path, this is a quality name in the biotech sector with great looking graphics. Regeneron’s stock is trading at its current low valuation, with a P/E ratio of 8.59, and it has outperformed the S&P 500 so far in 2022.
Regeneron reported Q4 revenue of $4.95 billion, up 104% year-on-year, thanks to strong sales of the company’s REGEN-COV COVID-19 antibody cocktail. While the drug should only provide a temporary boost to the company’s revenue, the company is moving forward with another cocktail of antibodies to infectious diseases that could also result in increased profits. With more than 30 product candidates in clinical development, recent FDA approvals for drugs like Dupixent, and plenty of relative strengths, Regeneron is truly a biotech stock to watch this month.
Vertex Pharmacy (NASDAQ: VRTX)
Whenever a biotech company has a specific treatment or therapy that is difficult for competitors to imitate, it’s stock worth looking at. That’s the case with Vertex Pharmaceuticals, as the company has developed a dominant position in treating cystic fibrosis. With CF drugs such as Kalydeco, Symdeko, Orkambi, and Trikafta, Vertex products have a very positive impact on the lives of patients around the world. Blockbuster drug Vertex Trikafta, which was a triple-combination CF regiment that received approval in 2019, has helped the company to deliver impressive top-line growth over the past few quarters.
The company’s management team estimates that they could treat up to 90% of all CF patients if they received additional approval for extended indications with their medications, which is a big reflection of how beneficial the treatment is. Given that the company’s patent protection extends to 2037, Vertex is in a fantastic position to dominate the CF market for many years to come. Finally, this biotech company is worth looking into thanks to its wide range of gene editing therapies to treat diseases like sickle cell disease. The stock is currently trading above all of the major short-term moving averages and is up more than 10% this year, which tells us it is one of the stronger stocks in the market today.
While it’s hard to imagine Pfizer repeating its near-parabolic gains from 2021, adding this blue-chip biotech stock while trading around its 200-day moving average could be a great long-term move. It is one of the largest biopharmaceutical companies in the world with one of the most diversified drug portfolios of any company, which means it is a company with plenty of resources to support dividends along with spending on research & development. Pfizer’s best-selling drugs include the Prevnar family of vaccines, Eliquis for stroke and embolism, and Ibrance for breast cancer.
The company has already received billions in revenue from the COVID-19 vaccine, which in turn will help drive the growth of other business areas. In addition to the vaccine, Pfizer’s oral drug Paxlovid was found to be 89% effective in preventing hospitalization among people at risk of serious illness from COVID-19 and could be another winner for the company. The stock trades at an attractive forward P/E ratio of 6.52 and offers investors a 3.33% dividend yield, which makes this opportunity almost too good to pass up in the biotech sector.
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