Morgan Stanley’s Adam Parker and team observe that biotech stocks now trade at the equal–or lower–valuations as US pharmaceutical companies. They consider the implications:
Kevin Hagen for The Wall Street Journal
US biotechnology stocks have markedly pulled back and now trade in line with US and European pharmaceutical companies on price-to-forward earnings and at a slight discount on price-to-operating cash flow. Macro trading patterns appear to be largely responsible, as biotech stocks are less idiosyncratic now than any time in history, and pharma appears to be a pretty macro trade as well, likely the result of a high investor focus on dividend yield compared to biotech. While recent earnings revisions trends have been strong for pharma, in the 95th percentile vs. history, ultimately, we think faster sales growth (9% vs. 4% going forward per MS analyst estimates), more margin expansion (net margins have moved from 13% to roughly 30% this cycle for biotech while pharma margins have remained stable near 13%), and an increased total yield should support biotechnology. We are overweight health care in the portfolio, and in particular have high exposure to biotechnology.
Hot Biotech Stocks To Buy Right Now: Amgen Inc.(AMGN)
- [By Stephan Byrd]
Private Capital Group LLC boosted its stake in Amgen, Inc. (NASDAQ:AMGN) by 1,703.1% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,362 shares of the medical research company’s stock after purchasing an additional 2,231 shares during the period. Private Capital Group LLC’s holdings in Amgen were worth $403,000 at the end of the most recent reporting period.
- [By Keith Speights]
Amgen Inc. (NASDAQ:AMGN) and Pfizer Inc. (NYSE:PFE) actually have quite a bit in common. They co-market one of the world’s best-selling drugs, Enbrel. They both face some headwinds with declining sales of older drugs. Each company has promising new drugs. And both stocks are up by nearly the same percentage over the last 12 months.
- [By Zacks]
The FDA also approved biosimilar Erelzi in 2016. However, the launch is pending in the United States due to an ongoing litigation with Amgen (NASDAQ: AMGN).
- [By Cory Renauer]
There’s a lot for investors to like aboutAmgen Inc. (NASDAQ:AMGN) andBiogen Inc. (NASDAQ:BIIB). Both of these biotech stocks have produced tremendous returns over the past couple of decades, and the businesses they represent still generate enormous profits.
- [By ]
Amgen (NASDAQ: AMGN) for example, announced FDA approval of its heart-attack prevention therapy on Dec 1. Immediately after, the stock popped 15% in less than two months, moving from $177.20 to $199.
- [By ]
In the Lightning Round, Cramer was bullish on The Blackstone Group (BX) , Nvidia (NVDA) , Amgen (AMGN) , Regeneron Pharmaceuticals (REGN) , Hasbro (HAS) and Waste Management (WM) .
Hot Biotech Stocks To Buy Right Now: Alnylam Pharmaceuticals Inc.(ALNY)
- [By Shane Hupp]
Get a free copy of the Zacks research report on Alnylam Pharmaceuticals (ALNY)
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- [By Keith Speights]
I wrote three months ago that I viewed Alnylam Pharmaceuticals (NASDAQ:ALNY) stock as a pretty good pick — but with a couple of qualifications. First, I didn’t think that the biotech would generate returns in 2018 nearly as great as it did last year. Second, I thought that there were even better stocks to buy than Alnylam.
- [By Max Byerly]
Alnylam Pharmaceuticals (NASDAQ:ALNY) last issued its quarterly earnings results on Thursday, May 3rd. The biopharmaceutical company reported ($1.41) EPS for the quarter, topping analysts’ consensus estimates of ($1.47) by $0.06. The business had revenue of $21.90 million during the quarter, compared to analysts’ expectations of $35.23 million. Alnylam Pharmaceuticals had a negative return on equity of 36.81% and a negative net margin of 565.20%. The business’s quarterly revenue was up 15.3% on a year-over-year basis. During the same quarter in the prior year, the business posted ($1.25) earnings per share. equities analysts anticipate that Alnylam Pharmaceuticals, Inc. will post -6.7 earnings per share for the current fiscal year.
- [By Joseph Griffin]
BidaskClub lowered shares of Alnylam Pharmaceuticals (NASDAQ:ALNY) from a strong-buy rating to a buy rating in a research report released on Monday.
Hot Biotech Stocks To Buy Right Now: Biogen Idec Inc(BIIB)
- [By Chris Lange]
Short interest in Biogen Inc. (NASDAQ: BIIB) increased to 4.33 million shares from the previous 3.86 million. The stock recently traded at $306.68 within a 52-week range of $249.17 to $370.57.
- [By George Budwell]
Biotech heavyweight Biogen (NASDAQ:BIIB) has now lost over 13% of its value so far this year. To be fair, this year hasn’t been kind to biotechs in general, thanks to President Trump’s aggressive trade policies with China.But Biogen’s value has been declining at a far faster rate than the industry as a whole due to stiffer competition in the all-important multiple sclerosis (MS) space.
- [By Todd Campbell]
Unfortunately for investors, June’s discovery wasn’t exciting enough for Sangamo partners Biogen (NASDAQ:BIIB) and Shire (NASDAQ:SHPG). In 2015, Biogen announced a delay to its beta-thalassemia and sickle-cell disease treatment program with Sangamo. And then Shire, a Sangamo collaboration partner since 2012, walked away from Sangamo’s hemophilia program.
- [By Chris Lange]
Short interest in Biogen Inc. (NASDAQ: BIIB) increased to 3.50 million shares from the previous 3.16 million. The stock recently traded at $262.15, within a 52-week range of $244.28 to $370.57.
Hot Biotech Stocks To Buy Right Now: ArQule Inc.(ARQL)
- [By Maxx Chatsko]
Shares of development-stage biopharma ArQule (NASDAQ:ARQL) rose nearly 17% today after the company announced two appointments to its management team in two newly created positions. Dr. Marc Schegerin will serve as senior vice president, corporate strategy, communication, and finance. Dr. Shirish Hirani will serve as senior vice president, program management and product planning.
- [By Money Morning Staff Reports]
But Blink and our other penny stocks to watch are unlikely to continue to lock in such spectacular gains in June. After looking at our 10 top penny stocks to watch this month, we’ll show you a small-cap stock with great profit potential in its future…
Penny Stock Current Share Price Law Month’s Gain
Blink Charging Co. (Nasdaq: BLNK) $7.07 439.85%
Senes Tech Inc. (Nasdaq: SNES) $1.27 175.40%
Vivis Inc. (Nasdaq: VVUS) $0.77 150.41%
Adomani Inc. (Nasdaq: ADOM) $1.49 137.68%
NF Energy Saving Co. (Nasdaq: NFEC) $2.34 134.88%
Vaalco Energy Inc. (NYSE: EGY) $2.15 109.06%
Heat Biologics Inc. (Nasdaq: HTBX) $2.35 99.12%
ArQule Inc. (Nasdaq: ARQL) $4.88 90.74%
LiqTech International Inc. (NYSE: LIQT) $0.66 85.60%
Transenterix Inc. (NYSE: TRXC) $3.46 77.84%
While last month’s gains are tremendous, they also illustrate the inherent dangers that come with investing in penny stocks.
- [By Joseph Griffin]
ArQule (NASDAQ:ARQL)‘s stock had its “buy” rating restated by equities researchers at Needham & Company LLC in a research report issued to clients and investors on Tuesday, Marketbeat Ratings reports. They currently have a $6.00 price target on the biotechnology company’s stock, up from their prior price target of $5.00. Needham & Company LLC’s price target suggests a potential upside of 134.38% from the company’s previous close.