Looking For The Best Biotech Stocks To Watch? 3 To Consider
Biotech stocks have been and still are on a tear in the stock market now. The industry as a whole is currently under the microscope of many investors. Obviously, this is due to the coronavirus pandemic that continues to plague the world. With over 95 million cases worldwide, investors would likely turn towards the top coronavirus stocks. However, it is often easy to overlook the fact that the top biotech stocks consist of a healthy mix of non-coronavirus related companies as well. After all, biotech companies play a key role in increasing our quality of life. Thanks to developments in the sector, the average life expectancy has more than doubled since the 1900s. It could make sense then, to possibly invest in companies that provide lifesaving solutions.
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On that note, investors and companies alike are aware of this. Take Arcturus (NASDAQ: ARCT) and Intellia (NASDAQ: NTLA) for example. Both companies have seen their share prices soar by over 400% in the past year. Another reason for the sector’s popularity would be the explosive gains seen by some of the best biotech stocks to watch in the stock market today. A possible reason for this could range from FDA updates to impressive trial results. For one thing, there is no shortage of diseases that require treatments and cures. Be it cancer, genetic illnesses, or even common allergies; there is a market for biotech companies in those spaces. Accordingly, it could also mean opportunities for investors.
Having read till this point, I would say you are at least partially curious about the sector. With companies making breakthroughs every other day, it can be attractive. Regardless, it is still important to know which companies are making the right moves. Well, to help with that, here is a list of the top biotech stocks to watch this week.
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Top Biotech Stocks To Watch Right Now
- Sorrento Therapeutics Inc. (NASDAQ: SRNE)
- Gilead Sciences Inc. (NASDAQ: GILD)
- DBV Technologies (NASDAQ: DBVT)
Sorrento Therapeutics Inc.
Starting us off is biotech giant Sorrento. In summary, it is a clinical-stage biopharmaceutical company that develops treatments for cancers, pain, and coronavirus. With such a relevant developmental pipeline, it is clear as to why investors have been flocking to SRNE stock. Impressively, it is looking at gains of over 120% in the past year. Just last Friday, SRNE stock jumped by over 18%. This coincided with a price target estimate from H.C. Wainwright early that day.
Wainwright analyst Ram Selvaraju projected a price target of about $30 for SRNE stock. This suggests a 215% upside from its price of $9.50 at last week’s closing bell. Moreover, Selvaraju also estimates that the company will be obtaining $320 million from its current investments. He cites Sorrento’s investments in biotech companies Celularity and NantKwest (NASDAQ: NK). First, the former will be merging with GX Acquisition Corp (NASDAQ: GXGX) to go public. This would entitle Sorrento to about $200 million in shares. The rest of the sum would come from NantKwest who recently saw its share prices rise. This is thanks to positive trial data in its pancreatic cancer treatment. Selvaraju also points out that Sorrento’s “burgeoning portfolio of assets spanning three distinct therapeutic areas” is another reason for the upgrade. Naturally, investors would be inclined to watch SRNE stock after such high praise.
Another point to consider would be the company’s solid financials. In its recent quarter fiscal, the company saw year-over-year jumps of 103% in total revenue and 116% in cash on hand. Its recent FDA application for its coronavirus test kit sets up exciting times ahead for SRNE stock. Would you agree?
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Gilead Sciences Inc.
Gilead is another top biotech stock to watch this week. The California-based biopharmaceutical company focuses on researching and developing antiviral drugs. Its portfolio consists of treatments for HIV, Hepatitis B, C, D, coronavirus, and cancer. At the moment, the company’s Biktarvy product is the most prescribed HIV treatment in the U.S. Adding to that, GILD stockholders receive a dividend payout of about 4.6% annually. Despite all of this, the stock has been mostly trading sideways with gains of 7% in the past month. Could GILD stock be undervalued? I say we take a closer look.
In its recent quarter fiscal posted in October, the company reported total revenue of $6.5 billion for the quarter. It also saw a 36% increase in cash on hand year-over-year. This adds up to a total of $12.89 billion. Just last week, the company raised its revenue and earnings per share guidance for the full year 2020. With estimates of $24.3 billion in revenue and $7 in earnings per share, Gilead appears confident moving forward. The company cites growing demand for its antiviral COVID-19 treatment, remdesivir as a driving factor for these gains. Given its impressive portfolio, should investors be watching GILD stock? Your guess is as good as mine.
Regardless, the company does not seem to be slowing despite its busy quarter so far. On January 12, Gilead announced a clinical collaboration with Vir Biotechnology (NASDAQ: VIR). The alliance will see both companies working towards the development of a functional cure for chronic hepatitis B virus (HBV). With HBV affecting over 290 million people worldwide, this is a great move by Gilead. Given all of this, do you think GILD stock is worth investing in?
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Last but not least, we have French clinical-stage biopharmaceutical company DBV. The company’s flagship “Viaskin” technology is used in the treatment of allergies. Thanks to recent feedback from the FDA, DBVT stock skyrocketed by over 51% on Friday’s trading session.
To elaborate, the company received a response from the FDA regarding its Viaskin Peanut (VP) patch. DBV applied for VP to be tested for use in treating peanut allergies in children ages 4 to 11 years. The company stated that the FDA’s feedback “provides a well-defined regulatory path forward.” CEO Daniel Tassé said, “We intend to advance a remediation plan for Viaskin™ Peanut and work closely with FDA to review protocols and re-file our BLA (Biologics License Applications) as soon as possible, so that we can bring Viaskin™ Peanut, if approved, to patients suffering from peanut allergies.” With peanut allergies being amongst the most common food allergies in the world, this is a great play on DBV’s end. Investors may be wondering if it has the means to see this project through.
Earlier this month, the company released a statement announcing final approval of its Global Restructuring Process. Tassé commented, “We believe our restructuring efforts will yield a leaner organization, enable us to achieve greater financial flexibility, and allow us to best position ourselves as we navigate the late stages of clinical development.” The company also stated, “Based on current assumptions regarding the progress of its regulatory dossier and in light of the final approval of the plan, DBV expects these cost-reduction efforts to significantly extend the Company’s cash runway to the second half of 2022.” Given its streamlining efforts, the DBV seems to have its work cut out for itself. Could all this be the launch point for DBVT stock to reach its former glory? I’ll let you decide.