This is a market like the world has never seen. U.S. equities are pushing to new record highs on Friday thanks in large part to a moon-shot trajectory by biotech and pharmaceutical stocks. The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) is up roughly 18% from its November low to break to new all-time highs.
Many factors are in play. But mainly, this is a reflection of the incredible bullish sentiment and powerful upward momentum at work in the public markets. In fact, according to SentinenTrader data, there have been nearly 200 days since the S&P 500 posted back-to-back losses of at least 0.25%.
But individual issues are benefiting from specific tailwinds as well.
Here are five to biotech and pharmaceutical stocks watch:
Biotech and Pharmaceutical Stocks to Buy: Gilead Sciences (GILD)
Gilead Sciences, Inc. (NASDAQ:GILD) shares are going vertical, up nearly 5% on Friday, in the wake of an upgrade by analysts at Jefferies. The sector was also bolstered by M&A activity earlier in the week, with Celgene Corporation (NASDAQ:CELG) buying Juno Therapeutics Inc (NASDAQ:JUNO) for $9 billion and Sanofi SA (ADR) (NYSE:SNY) buying Bioverativ Inc (NASDAQ:BIVV) for $11.6 billion.
The company will next report results on Feb. 6, after the close. Analysts are looking for earnings of $1.65-per-share on revenues of $5.7 billion. When the company last reported on Oct. 26, earnings of $2.27-per-share beat estimates by 14 cents on a 13.2% decline in revenues.
Biotech and Pharmaceutical Stocks to Buy: Biogen (BIIB)
Biogen Inc (NASDAQ:BIIB) shares are up nearly 4% on Friday to push up and over its October highs as investors greeted the company’s latest quarterly results with glee. Specifically, additional detail on a recent acquisition from Karyopharma (an early stage ALS treatment candidate). H.C. Wainwright analysts said they believe this deal exemplifies management’s core competency in developing scientifically sound assets.
The company will next report results on April 26. When the company last reported on Thursday, earnings of $5.26 missed estimates by 19 cents despite a 15.1% rise in revenues.
Biotech and Pharmaceutical Stocks to Buy: Amgen (AMGN)
Amgen, Inc. (NASDAQ:AMGN) shares are rising nearly 3% on Friday to challenge their high set earlier in the week. The company enjoyed an analyst upgrade at Argus on Jan. 22 after reporting positive Phase 3 results from an episodic migraine treatment.
The company will next report results on Feb. 1, after the close. Analysts are looking for earnings of $3.04-per-share on revenues of $5.8 billion. When the company last reported on Oct. 25, earnings of $3.27-per-share beat estimates by 17 cents on a 0.7% decline in revenues.
Biotech and Pharmaceutical Stocks to Buy: Pfizer (PFE)
Pfizer Inc. (NYSE:PFE) shares are blasting out of a two-month consolidation range, marking a 21%+ rise from the low set in August. The catalyst was headlines that European regulators approved PFE’s diabetes drug Steglatro developed in collaboration with Merck & Co., Inc. (NYSE:MRK).
The company will next report results on Jan. 30, before the bell. Analysts are looking for earnings of 56-cents-per-share on revenues of $13.67 billion. When the company last reported on Oct. 31, earnings of 67-cents-per-share beat estimates by 2 cents on a 0.9% rise in revenues.
Biotech and Pharmaceutical Stocks to Buy: AbbVie (ABBV)
AbbVie Inc (NYSE:ABBV) shares are moving the most aggressively among the ones presented here, up nearly 14% to cap a 25% gain over the past month. Investors have been spurred by solid quarterly results, raised forward guidance and the impact of the GOP’s tax cut legislation. Much of the stock’s jump is on strong sales of its Humira drug.
The company reported on Friday, before the bell. Earnings of $1.48-per-share beat estimates by 5 cents on a 13.9% rise in revenues. Before that, the company reported earnings of $1.41-per-share on Oct. 27, which beat estimates by 2 cents.