Are These Top Biotech Stocks On The Top Of Your Mind This Week?
This week will be a week where we see many top biotech stocks reporting their earnings. No doubt, hopes of a vaccine breakthrough have boosted biotech stocks. As pharmaceutical and biotechnology companies begin to report their second-quarter earnings, the industry could also be facing some headwinds.
Pharmaceuticals and biotech stocks have been propelled into the spotlight as the coronavirus pandemic spells the importance of vaccines and treatments. For this reason, companies that are working on Covid-19 related programs have seen their share prices soaring. But the truth is, we have yet to see any approved vaccines or treatments. It’s gonna take some time to complete clinical trials. Until there’s a commercialized vaccine in distribution, vaccine manufacturers will not be booking any revenue from it. On the treatment front, Gilead’s (GILD Stock Report) remdesivir appears to be working well on serious cases. This makes GILD stock one of the top biotech stocks to watch in the past few months.
The benefit of investing in large-cap biotech stocks is that they have a strong pipeline of drugs. And if they have an additional drug for Covid-19, even better. Their broader economic moats are making them a defensive investment. Yet they have a lot of potential upsides shall the Covid-19 initiatives materialize. Let’s take a closer look at a list of top biotech stocks that are set to disclose their earnings this week.
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Top Biotech Stocks To Buy Now [Or Sell]: Pfizer
First, up the list, Pfizer (PFE Stock Report) was all over the news last week after encouraging results from the vaccine candidate co-developed with BioNTech (BNTX Stock Report). Following the positive news, the company received a further boost when the U.S. government promised to fund the companies $1.95 billion to secure 600 million doses of the vaccine, with the condition it receives approval from the FDA.
As a result, the two fold positive news gave PFE stocks a boost. Shares of PFE have since rebounded more than 30% since the March lows. The company is also reported to be in the midst of spinning off its less profitable segment to Mylan (MYL Stock Report). Once the spin-off is complete, it is possible that the pharmaceutical giant will be a much more profitable company. With the company’s strong pipeline of 91 drugs, and quite a number of them having strong growth potential, is PFE stock a buy?
Top Biotech Stocks To Buy Now [Or Sell]: AstraZeneca
Another pharmaceutical giant grabbed headlines last week was AstraZeneca (AZN Stock Report). This came after the interim results from the phase 1/2 trial of the company’s vaccine were very positive. As such, the company’s vaccine candidate AZD1222 is one of the two such candidates entering the third stage of trials. The strange thing here is that such news would typically push the stock up, but the stock went south instead. So, what happened?
As you may have known already, the drug had “minor side-effects” despite its ability to induce antibody and T-cell immune response. The fact that side effects were largely concealed made some investors wonder if they were being overly optimistic about the vaccine’s outcome. To be fair, nearly all phase-2 vaccines are exhibiting similar side-effects, and that includes Moderna as well. But I guess it’s fair to assume that many would rather get these side-effects than getting Covid-19.
Top Biotech Stocks To Buy Now [Or Sell]: Amgen
Next on the list, Amgen (AMGN Stock Report) is a biotech stock with strong dividend yield, and most importantly the company has seen its overall revenue increasing steadily. The company is currently partnering Adaptive Biotechnologies (ADPT Stock Report) to potentially treat or prevent Covid-19. The company’s strong cash position is also what makes it more attractive compared to other biotech stocks in the market.
There isn’t any major news that would trigger a huge price movement recently. Sales were flat during the first quarter. There are a lot of promising late-stage drugs that are expecting to get approvals soon. Amgen also has several rising star-drugs in its lineup. With all that in mind, it appears that Amgen’s pipeline could make them one of the best dividend stocks to have.
Top Biotech Stocks To Buy Now [Or Sell]: GlaxoSmithKline
Shares of GlaxoSmithKline (GSK Stock Report) have underperformed the industry so far this year. The stock has declined 14.1% against the industry’s rise of 0.8%. Given the scale, many would argue that this is quite a well-run company. From the financial front, the company has reported an 18.7% quarterly revenue growth and an admirable 15.3% profit margin. With almost ten pipeline drugs awaiting registration, investors should expect revenue growth in the next few years to be higher.
Given a strong pipeline of 37 drugs and 15 potential vaccines, the revenue growth is likely to continue, making GSK one of the best biotech stocks to watch in the market.