Are these biotech stocks on your watchlist?
It has been quite a busy year for biotech stocks. Rumors have made some investors really rich, while “reality” has crushed others. Regardless of what each of us think are the best biotech stocks to buy, we all share the same goal, that is to make money. This year was rather special for biotech stocks due to the coronavirus pandemic. As many biotechnology firms are racing to fight the virus, investors gave them a new label, referring to them as coronavirus stocks. If you have been following the biotechnology space this year, you would have witnessed some of the biggest breakouts in the market.
That said, investors have been looking for the next ten-bagger stocks to invest in. Currently, the industry in which you are most likely to find a ten-bagger stock would be is the biotechnology industry. But of course, not all biotech stocks can make such a return. Many of them only went up for a short period of time, and before you know it, you are already seeing them in the red. Hence, when it comes to investing, don’t forget your rules. The important part is making tons of research and piece the findings together to build your strategies.
How To Find The Best Biotech Stocks To Buy
At the end of the day, you need to know the difference between a few types of stocks. First, are you looking to trade a biotech stock for a quick flip? Or are you planning to invest in the company for a longer term? You have to be crystal clear before making a decision.
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If you plan on investing in small cap biotech stocks, you must be prepared for a highly volatile, speculative ride. If you are a long term investor, can you stomach seeing your stock going south? After all, many claim to be long term investors until they start underperforming. Again, be very specific with your strategy before you begin. With that in mind, let’s look at some of the most exciting moves we’ve seen from the news. Here are a few biotech stocks that you might want to add to your watchlist.
Best Biotech Stocks To Buy Now (Or Avoid) #1 Co-Diagnostics (CODX)
Co-Diagnostic (CODX Stock Report) has been on investors’ radar for the past two months. The primary focus of the company is to develop, manufacture and market a new, state-of-the-art diagnostic technology. CODX stock has skyrocketed more than 100% in one month to $20.8 per share. If you have invested in this company since the start of the year, when the shares were trading at just $0.91 per share, you would probably be feeling particularly good.
Positive Clinical Data Signals Opportunity For CODX Stock
This stock had a further boost last month when the company announced data on its LogixSmart molecular test for SARS-CoV-2 which showed 100% sensitivity and 100% specificity. On April 16, CODX stock shot up nearly 44% after the coronavirus testing technology had been validated by OralDNA for use on saliva samples. Apart from the testing accuracy, saliva testing also seems like a much more pleasant experience compared to nasal swabbing, and investors like that.
The company continues to make big moves this month after it announced two positive developments. The Logix Smart Covid-19 test was given the green light for sale in Mexico. Also, the Saragene Covid-19 test, a joint venture product with CoSara, was also approved for sale in India. Apart from explosive orders of test kits from abroad, the orders for Logix Smart Covid-19 tests are also going strong across the U.S., and demand is not slowing down.
While Co-Diagnostics is currently lossmaking, analysts expect the company to be profitable, at least on an adjusted basis for year 2020. As the company has not released the data on the volume of demand for its products, we couldn’t really justify the valuation the company is currently trading at. While the rally has been solid, investors have to note that this is a thinly traded stock. This means that actions by a small number of investors could move the price by a lot. If you are going to take a deeper look at this biotech stock, be cautious.
Best Biotech Stocks To Buy Now (Or Avoid) #2 Gilead Sciences (GILD)
Gilead Sciences (GILD Stock Report)(GILD) is ticking lower to $77.06 per share. This came after a report from WSJ saying that remdesivir is being tested with other drugs to find a more effective treatment for Covid-19. While this is only preliminary, remdesivir remains the best treatment we have thus far.
The company has been working endlessly to increase production of what could be a major pharmaceutical solution to Covid-19. This came as Gilead received the FDA approval to use remdesivir as a treatment to critical Covid-19 patients. So, what’s the secret behind the drug? Studies show that remdesivir has components that could shorten the healing period. Also, hindering the virus from replicating and spreading in the body.
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Gilead would still be a buy if you consider its long-term revenue potential. With no end in sight for the pandemic and the Covid-19 virus expected to become a seasonal illness like the flu. GILD stock has the potential to generate a decent return for investors. We must also remember that Gilead’s solid experience with HIV and viral hepatitis drugs could make them the best biotech stock to buy in the market, even if there’s a better alternative treatment for coronavirus. GILD stock remains the best bet for now.