U.S. equities are continuing to melt higher on Wednesday as fears over the North Korean missile strike earlier in the week are fading amid a fresh focus on possible tax reform legislation.
Also, we’re seeing fading concerns about the aftermath of Hurricane Harvey and the impact on the U.S. energy industry.
Biotechnology stocks are surging, driving the Nasdaq to big-time gains, thanks to specific M&A activity after Kite Pharma Inc (NASDAQ:KITE) was acquired by Gilead Sciences, Inc. (NASDAQ:GILD) for $12 billion.
Here are five biotech stocks surging in response:
Biotech Stocks to Buy: Gilead (GILD)
Click to Enlarge Gilead Sciences shares are blasting to a gain of nearly 6% as investors continue to digest news of the acquisition of KITE on Monday. The move to test the $80-a-share level returns prices to levels not seen since last September.
Watch for a move to the 200-week moving average near $85, which would be worth a 6% gain from here.
The company will next report results on Oct. 31 after the market. Analysts are looking for earnings of $2.11 per share on revenues of $6.4 billion.
When the company last reported on July 26, earnings of $2.56 per share beat estimates by 39 cents despite an 8.2% drop in revenues.
Biotech Stocks to Buy: Biogen (BIIB)
Click to Enlarge Biogen Inc (NASDAQ:BIIB) shares are breaking up and over a three-year resistance zone with a move up and over the $300-a-share level. This pushes prices back to levels not seen since the summer of 2015. Shares have
Shares have a ways to run before returning to the early 2015 high near $450 — which would be worth nearly a 50% gain from current levels.
The company will next report results on Oct. 26 before the bell.
Analysts are looking for earnings of $5.63 per share on revenues of $3 billion. When the company last reported on July 25, earnings of $5.04 beat estimates by 67 cents on a 6.4% rise in revenues.
Biotech Stocks to Buy: Regeneron Pharmaceuticals (REGN)
Click to Enlarge Regeneron Pharmaceuticals Inc (NASDAQ:REGN) shares are jumping up and over its 50-day moving average breaking out of a month-long consolidation range ahead of what is likely to be another run at recent highs near $520. Merely a retest would be worth a gain of around 5% from current levels.
The company will next report results on Nov. 3 before the bell. Analysts are looking for earnings of $3.81 per share on revenues of $1.45 billion.
When the company last reported on Aug. 3, earnings of $4.17 beat estimates by 99 cents on a whopping 21.2% rise in revenues.
Biotech Stocks to Buy: Incyte Corp. (INCY)
Click to EnlargeIncyte Corporation (NASDAQ:INCY) shares are rising to the upper end of a five-month consolidation range, crossing over the 50-day moving average after finding support near the 200-day average.
Watch for a run to the March high near $155 — which would be worth a gain of nearly 15% from current levels.
INCY will next report results on Oct. 31 before the bell. Analysts are looking for earnings of eight cents per share on revenues of $358.9 million.
When the company last reported on Aug. 1, a loss of six cents per share missed estimates by two cents despite a 32.5% rise in revenues.
Biotech Stocks to Buy: Celgene (CELG)
Click to Enlarge Celgene Corporation (NASDAQ:CELG) shares are rising to close in on the highs set earlier this month, closing in a three-year resistance near the 2015 high of $140.72.
The move takes shares back up and over their 50-day moving average and returns shares to the center of a three-month-long consolidation range.
The company will next report results on October 26 before the bell. Analysts are looking for earnings of $1.88 per share on revenues of $3.4 billion.
When the company last reported on July 27, earnings of $1.82 beat estimates by four cents per share on an 18.7% rise in revenues.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
