U.S. equities are starting the second week of the new year in a mixed fashion on Monday, with investors looking ahead to key datapoint later this week (including an update on inflation) as well as ongoing political machinations in Washington.
The latest its that Special Council Robert Mueller is reportedly preparing to interview President Trump as part of the Russia investigation within the next few weeks — something that Trump’s lawyers are reportedly resisting.
Healthcare and financial stocks are among the laggards.
Biotech, in particular, is getting hit after a 10%-plus rally out of the mid-November low for the iShares Biotech (NYSEARCA:IBB), threatening to move below its 20-day moving average. That would set up another retest of its 200-day moving average down near $104, which would be worth a decline of around 4% from current levels.
A number of stocks in the sector look vulnerable to further profit-taking losses. Here are five to watch:
Biotech Stocks: Biogen (BIIB)
Biogen Inc (NASDAQ:BIIB) shares are falling away from overhead resistance near $350 associated with its mid-October high. Watch for a move back to the October-December consolidation range near $310 which could set up a nice buying opportunity for another breakout attempt.
The company was cited by a Piper Jaffray analyst as one of the more reasonably valued large-cap biotech companies.
The company will next report results on Jan. 25 before the bell. Analysts are looking for earnings of $5.47 per share on revenues of $3.1 billion. When the company last reported on Nov. 24, earnings of $6.31 beat estimates by 58 cents on a 4.1% rise in revenues.
Biotech Stocks: Regeneron (REGN)
Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is moving lower once more, capping a downtrend going back to July that’s totaled more than 30%. This pushes shares back into a consolidation range going back to 2016 near $360, a level that should hold. The company was recently initiated with a hold rating by Deutsche Bank.
The company will next report results on Feb. 8 before the bell. Analysts are looking for earnings of $4.56 per share on revenues of $1.49 billion.
When the company last reported on November 8, earnings of $3.99 beat estimates by 17 cents per share on a 23% jump in revenues.
Biotech Stocks: Alexion (ALXN)
The company will next report results on Feb. 15 before the bell. Analysts are looking for earnings of $1.27 per share on revenues of $878.3 million. When the company last reported on Oct. 26, earnings of $1.44 beat estimates by 12 cents on a 7.5% rise in revenues.
Biotech Stocks: Celgene (CELG)
Celgene Corporation (NASDAQ:CELG) shares are slipping lower on Monday after issuing mixed guidance at the J.P. Morgan Healthcare Conference and announcing the acquisition of Impact BIomedicines to move into the blood cancer space.
There remains some apprehension about the reliance on Revlimid for nearly two-thirds of its sales.
The company will next report on Jan. 25 before the bell. Analysts are looking for earnings of $1.93 per share on revenues of $3.5 billion. When the company last reported on Oct. 26, earnings of $1.91 beat estimates by four cents on a 10.2% rise in revenues.
Biotech Stocks: Amgen (AMGN)
Amgen, Inc. (NASDAQ:AMGN) shares are holding steady at the moment, but are vulnerable to a decline to the 200-day moving average near $170, which would be worth a decline of roughly 6% from current levels — continuing a sideways channel near current levels that’s been in place since late 2014.
The company will next report results on Feb. 1 after the close. Analysts are looking for earnings of $3.03 per share on revenues of $5.9 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.
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.
