5 Biotech Stocks That Are Roaring Back to Life

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biotech stocks - 5 Biotech Stocks That Are Roaring Back to Life

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While the broad market drifts lower in trading on Wednesday for the second day, biotech stocks and pharma stocks are blasting to the upside in a rare show of strength amid a week of weakness.

5 Biotech Stocks That Are Roaring Back to Life

Source: Shutterstock

The catalyst? Reports that the White House’s executive order on drug pricing — something President Trump has frequently touched on — may not be released for weeks.

As a reminder, Trump has said he wanted to allow the government to bid on drugs to lower costs. As it is now, drug/biotech companies are “getting away with murder” in his words.

Wall Street seems to be interpreting this headline as either representing a potential softening of Trump’s positions  — amid his aim of holding meetings with industry officials to find a way forward — or possibly even a tabling of the issue given other priorities, such as tax cuts and healthcare system reform.

Whatever the specific motivation, the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) has surged some 10% so far this month to break above a two-year resistance level near $300 and it hit highs not seen since early 2016.

With that in mind, here are five biotech stocks on the move:

Surging Biotech Stocks: Amgen (AMGN)

Surging Biotech Stocks: Amgen (AMGN)Amgen, Inc. (NASDAQ:AMGN) shares are pushing to four-month highs, closing the gapped decline in March and setting up a test of the prior highs above $180, which would be worth a 6% gain from here. AMGN shares remain within the confines of a four-year consolidation range between $180 to the upside and $130 to the downside.

Amgen will next report results on July 26 after the close. Analysts are looking for earnings of $3.08 per share on revenues of $5.68 billion. When the company last reported results on April 26, earnings of $3.15 per share beat estimates by 14 cents on a 1.1% decline in revenue.

Surging Biotech Stocks: Celgene (CELG)

Surging Biotech Stocks: Celgene (CELG)Celgene Corporation (NASDAQ:CELG) shares are surging more than 4% in mid-day trading, testing the mid-2015 highs and rising more than 40% from the late-2016 low. CELG shares got a nice lift from the test of the 200-day moving average near $116 at the start of the month and haven’t looked back.

Celgene will next report results on July 27 before the bell. Analysts are looking for earnings of $1.61 per share on revenues of $3.25 billion. When CELG last reported results on April 27, earnings of $1.68 per share beat estimates by 5 cents on a 17.8% rise in revenues.

Surging Biotech Stocks: Biogen (BIIB)

Surging Biotech Stocks: Biogen (BIIB)Biogen Inc (NASDAQ:BIIB) shares are up 4% in mid-day trading, crossing above the 200-day moving average to make another run at three-year overhead resistance near $310. Merely a retest would be worth a 12% gain from here.

BIIB will next report results on July 25 before the bell. Analysts are looking for earnings of $4.4 per share on revenues of $2.8 billion. When the company last reported results on April 25, earnings of $5.20 per share beat estimates by 22 cents on a 3.1% rise in revenues.

Surging Biotech Stocks: Regeneron Pharmaceuticals (REGN)

Surging Biotech Stocks: Regeneron Pharmaceuticals (REGN)Regeneron Pharmaceuticals Inc (NASDAQ:REGN) shares are going parabolic, surging 5.4% in trading at levels not seen since Jan. 2016. Watch for a run to the 2015 high near $600, which would be worth a 15%+ gain from here. The company was upgraded by Piper Jaffray analysts on Tuesday, with a new $557 price target.

REGN will next report results on Aug. 3 before the bell. Analysts are looking for earnings of $2.67 per share on revenues of $1.36 billion. When the company last reported results on May 4, earnings of $2.92 per share missed estimates by 15 cents on a 9.8% rise in revenue.

Surging Biotech Stocks: Gilead Sciences (GILD)

Surging Biotech Stocks: Gilead Sciences (GILD)Gilead Sciences, Inc. (NASDAQ:GILD) shares are the turnaround play of the bunch, mired in a strong and persistent downtrend from its 2015 high near $117.50. A break above the 200-day moving average would signal a change in trend ahead of a possible test of the summer 2016 highs near $85, which would be worth a 25% gain from here.

GILD will next report results on Aug. 1 after the close. Analysts are looking for earnings of $2.10 per share on revenues of $6.25 billion. When the company last reported results on May 2, earnings of $2.23 per share missed estimates by 5 cents on a 16.5% decline in revenues.

Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. A two-week and four-week free trial offer has been extended to Investorplace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/5-biotech-stocks-roaring-back/.

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