While U.S. equities continue their sideways skid just below the Dow 20,000 threshold — a level that has provided intractable for the last five weeks — buyers aren’t sitting still. Since the New Year, vigorous new interest has been seen in biotech stocks as hopes build for president-elect Donald Trump’s plans to repeal and replace Obamacare, potentially improving both cost and coverage.
If successful, that will mean millions of new patients paying for drug treatments and medical devices — just the thing to boost profits in the medical sector.
As a result, the iShares Nasdaq Biotechnology Index (ETF) (NASDAQ:IBB) is up more than 8% from its late December low and is moving in on its mid-November highs. The IBB has been in a year-long funk after peaking in the summer of 2015.
For those looking to play along, here are five biotech stocks that are heating up: