Are These The Best Biotech Stocks To Buy Right Now?
One of the hottest investment themes in the stock market this year centered around biotech stocks. If you combine the words “biotech” and “small-cap” together, that could be a great recipe for breakouts. The fact that a lot of focus has been on the biotech space is not surprising. One reason could be because small-cap biotech stocks are famous for their notorious breakouts. For this reason, many investors are searching high and low for the best biotech stocks to buy.
It is not something new to veteran investors that small-cap stocks can produce a few hundred percent returns. Some have even returned more than a thousand percent. If you look at some of the most active biotech stocks in the space, chances of you seeing overnight breakout are common. That said, if you do the research and studies, with excellent timing, you might gain a thousand percentage gains in a few days’ time. But in most cases, something so speculative also carried a higher level of risk, where gains can quickly become losses.
Top Biotech Stocks Boost Stock Market Gains; Time To Buy?
As you probably could imagine, the universe of biotech stocks is as vast as the potential treatments in this field. If you are unsure on which biotech stock to bet on, iShares Nasdaq Biotechnology ETF (IBB Stock Report) could be a good place to start. Alternatively, you could also look at the biggest biotech names with potential catalysts underway, such as Pfizer (PFE Stock Report) or Johnson & Johnson (JNJ Stock Report). These top biotech stocks have a strong streak of earnings growth, making it an excellent dividend stock. But what if you want a faster-expected rate of return?
If you could stomach a higher risk when the stock moves both ways on an epic scale, then the smaller cap biotech stocks might be your cup of tea. Either way, with strong research and due diligence, both small and large-cap biotech stocks could prove to be very rewarding. With all that in mind, there are a few biotech companies making big moves this week on positive news regarding their clinical trials. Are these biotech stocks on your watchlist?
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Best Biotech Stocks To Buy [Or Sell] Now: Sorrento Therapeutics
The mere mention of the COVID-19 vaccine has created considerable interest in Sorrento Therapeutics (SRNE Stock Report). The company’s coronavirus vaccine candidate, Abivertinib will be entering phase 2 testing in Brazil. This led investors to bid up their stock price on Thursday after the recent plunge in its stock prices. Sorrento Therapeutics’s stock price has been moving on an epic scale, running from $3.39 earlier this year to its high of $19.39. Of course, we wouldn’t bet on a potential return of the same magnitude anytime soon. After all, if the company does not show as much progress as investors are hoping to see, the stock may lose steam at some point.
“By targeting some of the geographies currently most impacted by COVID-19, we are able to implement a synergistic program to answer questions about safety and efficacy of our drug candidates in helping patients, while potentially accelerating enrollment timelines, reducing overall cost and opening up collaboration opportunities with local companies,” Sorrento quoted CEO Henry Ji as saying.
With the recent pullback in SRNE stock, is it worth buying right now? Sorrento has certainly made its presence felt with its work on the COVID-19 vaccine. But of course, it is not quite in the leading positions. Does that mean that the stock has gotten ahead of itself? Your guess is as good as mine. The good thing is, Sorrento is not a one-trick pony. Besides its COVID-19 programs, it also has a number of oncology and pain programs in the pipeline. The question is, would you be willing to stomach the potential volatility?
Best Biotech Stocks To Buy [Or Sell] Now: Altimmune
Developmental stage biotech company Altimmune (ALT Stock Report) has been making big moves this week. ALT stock started gaining attention earlier this week after surging more than 27% during the intraday trading on Monday. The jump in stock was in response to the pre-publication of an animal study for its intranasal COVID-19 vaccine candidate known as AdCOVID. The company is a perfect example of a small-cap biotech stock having a notorious breakout. You see, ALT stock was only traded at $1.92 per share earlier this year. Since then, it had jumped more than 1,500% at its peak and is now trading 583% higher year to date.
The company believes AdCOVID may be able to offer a number of advantages in comparison with other COVID-19 vaccines under development. Of course, its intranasal administration likely makes it less painful than an injection. Besides, Altimmune is designing AdCOVID to be effective with just a single dose to generate immune response. Furthermore, the vaccine candidate could also be transported and stored more conveniently.
Of course, Altimmune is not among the best-known competitors in the vaccine race. Yet, should it indeed be able to produce a safe and effective COVID-19 vaccine that is easy to ship, that would be a game changer. Of course, we are not saying that you should jump in right now. Like the other stocks on this list, the potential drop in the case of an unsuccessful drug would be precipitous. Nevertheless, the unique properties of Altimmune makes ALT stock a vaccine stock to watch.
Best Biotech Stocks To Buy [Or Sell] Now: Cassava Sciences
Clinical stage biotech company, Cassava Sciences (SAVA Stock Report) was the best biotech stock to buy in September. In fact, it was only a biotech penny stock earlier last month. But that’s no longer the case when SAVA stock jumped by a staggering 250% over just the past month. Over the last 12 months, the stock rose by 778%. Shareholders must have been pleased.
For those who haven’t come across Cassava Sciences, the company is currently on a strong mid-stage trial for its experimental Alzheimer’s disease medication known as sumifilam. Given the limited options in the Alzheimer’s space, the first drug to slow down or even reverse the disease would almost certainly become a blockbuster. Admittedly, sumifilam is still some distance away from providing conclusive evidence and winning regulatory approval.
Now, Cassava doesn’t have the balance sheet to conduct a costly phase 3 trial. Therefore, the company will probably partner with or sell itself to big pharma. It seems like there may still be upside despite the recent run. Despite its recent weakness in SAVA stock, I am still keeping an eye on this one. Who knows, sumifilam might just be the Alzheimer’s drug we’ve been waiting for. And if that happens, we could be staring at a multibagger here.