Should You Buy Or Sell These Biotech Stocks By July 2020?
Biotech stocks have proved to be one of the most interesting areas to watch when it comes to massive breakouts overnight. No other sector comes close to the return potential of this sector. And that’s not surprising because the world is racing to find the first effective vaccine against Covid-19. Some have the perception that vaccine development is a winner-take-all business.
Many analysts think that for the US economy to return to normalcy, we need a safe and effective vaccine for Covid-19. The vaccine also has to be widely available. They are probably right. With lockdown easing across states in the country right now, the need for vaccines is even more pronounced.
The first wave of the virus is not under full control yet. And now we are facing the second wave after the lifting of lockdown restrictions. We need some defense against that. One thing that’s encouraging is that both large and small-cap biotech stocks have scrambled to develop diagnostic tests, treatments, and vaccines. Of course, these companies are in it to profit from their efforts. But so is every investor.
How Should We Trade Biotech Stocks To Buy In 2020?
All in all, we need to know the difference between a few types of stocks. First, are you planning to invest in a particular stock for the long term? Or are you looking to trade biotech stock for a quick flip?
If you are into biotech stocks for a long timeframe, your focus might want to be those that already have a working product and are currently profitable. On the flip side, if you are looking for a potential breakout overnight, then the focus will be on small cap biotech stocks. However, the downside that comes with small cap biotech stocks is that they can be quite volatile. And some investors like that. With that being said, are these biotech stocks on your watch list this week?
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Best Biotech Stocks To Watch Before July 2020: Novavax Inc.
Among the best biotech stocks to buy, vaccine specialist Novavax (NVAX Stock Report) has earned its place as one of this year’s star performers. The stock has returned approximately 1,600% percent year to date. There’s no doubt about the reward the stock has brought to its investors.
It’s almost unbelievable that Novavax started off as one of the best small-cap biotech stocks in the market earlier this year. If you have been looking for the ultimate risk-reward play in your trading game, NVAX stock was the perfect bet earlier this year. Despite its highly potent candidate NVX-CoV2373, the biotech company was not on the list of five companies to receive support from the Trump administration’s Operation Warp Speed program. The possible reason for that? That may simply be due to its lack of resources compared to major pharmaceutical companies like J&J (JNJ stock report), Gilead (GILD stock report), or Vertex Pharmaceuticals (VRTX stock report). The question is, will NVAX stock continue its rally?
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Best Biotech Stocks To Watch Before July 2020: iBio Inc.
iBio Inc. (IBIO Stock Report) is another small-cap biotech stock that turned heads earlier this year. While recent movements aren’t signaling potential big moves, IBIO stock was a force to be reckoned with earlier in 2020. Shares of IBIO have risen more than 400% year to date. They last traded at $1.60.
Earlier this month, iBio announced the initiation of preclinical immunization studies for its second Covid-19 vaccine program. However, it is the most recent update that investors should take note at. The company is now back on investors’ radar. This is after iBio announced it was selected by IBM Watson Health to receive 18 months of use of the IBM Clinical Development solution for free. For this reason, iBIO stock was 9% higher as of 12.25pm EDT. Following this update, could we expect IBIO stock to march higher through the remaining of the month?