7 Biotech Stocks to Add to Your Portfolio

by Portfolio Grader | May 26, 2012 9:00 am

test tubes 7 Biotech Stocks to Add to Your PortfolioHealthcare is a crash-proof sector, since patients will need treatment regardless of broader economic conditions. And some of the best performing stocks are up-and-coming biotechs that are developing the next generation of cures for the aging Baby Boomer population.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve found seven biotech stocks to buy.

Here they are, in alphabetical order. Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”

Alexion Pharmaceuticals (NASDAQ:ALXN[2]) is a biopharmaceutical company that works with customers with severe and ultra-rare disorders. In the last 12 months, ALXN stock has jumped 91%. Alexion stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, an “A” grade for earnings growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and a “B” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of ALXN stock[3].

Amgen (NASDAQ:AMGN[4]) is a biotechnology medicines company that has posted a 13% gain since last May. Amgen stock gets a “B” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months, a “B” grade for cash flow and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of AMGN stock[5].

Biogen Idec (NASDAQ:BIIB[6]) is involved with therapies for the treatment of neurodegenerative diseases, hemophilia and autoimmune disorders. BIIB is up 38% in the last 12 months. Biogen stock gets a “B” grade for operating margin growth, a “B” grade for cash flow and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of BIIB stock[7].

Celgene (NASDAQ:CELG[8]) works to treat cancer and immune-inflammatory related diseases. Since last May, Celgene stock has gained 17%, compared to smaller gains by the broader markets. CELG stock gets a “B” grade for sales growth, a “B” grade for operating margin growth, an “A” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for cash flow and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of CELG stock[9].

Gilead Sciences (NASDAQ:GILD[10]) is a research-based biopharmaceutical company that has posted a gain of 24% in the last 12 months. Gilead stock gets a “B” grade for sales growth, a “B” grade for cash flow and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of GILD stock[11].

Regeneron Pharmaceuticals (NASDAQ:REGN[12]) is an integrated biopharmaceutical company. REGN stock has posted an impressive gain of 130% in the last year. Regeneron stock gets an “A” grade for sales growth and an “A” grade for earnings momentum in my Portfolio Grader tool. For more information, view my complete analysis of REGN stock[13].

Vertex Pharmaceuticals  (NASDAQ:VRTX[14]) works with small molecule drugs for the treatment of serious diseases. Vertex is the biggest winner on this list with a gain of 93% in the last 5 months. VRTX stock gets an “A” grade for sales growth and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of VRTX stock[15].

 


Endnotes:
  1. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  2. ALXN: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALXN
  3. For more information, view my complete analysis of ALXN stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=alxn&submit=submit&type=site
  4. AMGN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMGN
  5. For more information, view my complete analysis of AMGN stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=amgn&submit=submit&type=site
  6. BIIB: http://studio-5.financialcontent.com/investplace/quote?Symbol=BIIB
  7. For more information, view my complete analysis of BIIB stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=biib&submit=submit&type=site
  8. CELG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CELG
  9. For more information, view my complete analysis of CELG stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=celg&submit=submit&type=site
  10. GILD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GILD
  11. For more information, view my complete analysis of GILD stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=gild&submit=submit&type=site
  12. REGN: http://studio-5.financialcontent.com/investplace/quote?Symbol=REGN
  13. For more information, view my complete analysis of REGN stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=regn&submit=submit&type=site
  14. VRTX: http://studio-5.financialcontent.com/investplace/quote?Symbol=VRTX
  15. For more information, view my complete analysis of VRTX stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=vrtx&submit=submit&type=site

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