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4 Biotech Stocks to Buy

When the market environment gets ugly (like now), biotech tends to become a safe-haven

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Anika Therapeutics (ANIK)

ANIK stock

With a mere market cap of $603 million, it’s not like Anika Therapeutics (ANIK) turns a lot of heads within the world of biotech stocks. However, it’s still one of the few great biotech stocks to buy, for value-based reasons.

Shares of ANIK plunged 17% over the course of Thursday and Friday after reporting Q2’s numbers after the market closed on Wednesday. Clearly, the market didn’t like what it heard. Operating income grew 61%, from $9.4 million a year earlier to $15.2 million. Per share of ANIK stock, income grew from 40 cents to 60 cents per share, topping estimates of 57 cents. Revenue improved from $20.8 million in the second quarter of 2013 to $26.3 million this time around.

So why in the world did traders protest the results with a steep selloff? Great question. They were outstanding by all standards, and it’s not like there’s a valuation issue; ANIK stock is priced at a palatable trailing P/E of 19.0 and a forward-looking one of 23.2 (which woefully underestimates the growth Anika Therapeutics has proven it’s capable of producing). The potential for a rapid rebound makes this one of the top biotech stocks to buy here at the onset of August.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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