Use Weakness in these 3 Alzheimer’s Disease Stocks as Opportunity

Alzheimer’s - Use Weakness in these 3 Alzheimer’s Disease Stocks as Opportunity

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Millions of Americans are struggling with Alzheimer’s, according to the Alzheimer’s Association. The disease often has a slow progression, lasting years or even decades, and it’s one of the leading causes of death in the United States. Memory loss and declines in the ability to think clearly, solve problems, and even communicate are a terrible part of the disease.

Unfortunately, “As the number of older Americans grows rapidly, so too will the number of new and existing cases of Alzheimer’s. By 2050, the number of people age 65 and older with Alzheimer’s dementia may grow to a projected 12.7 million, barring the development of medical breakthroughs to prevent, slow or cure Alzheimer’s disease,” wrote the Alzheimer’s Association.

All in all, it’s a devastating illness with far-reaching and long-lasting impacts.

Unfortunately, there’s no cure for Alzheimer’s — at least not yet.  However, there are emerging treatments that could help change the progression of the disease.  In fact, we’ve seen some fascinated new developments from companies, such as:

  • Cassava Sciences (NASDAQ:SAVA)
  • Anavex Life Sciences (NASDAQ:AVXL)
  • Annovis Bio (NYSEAMERICAN:ANVS)

Alzheimer’s Disease Stocks: Cassava Sciences (SAVA)

CLOV stock: stethoscope laying atop medical papers

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Cassava Sciences has been incredibly explosive. After a drop to $72.80 0n July 19, the stock exploded to a high of $146.16. Shortly after, SAVA stock would pull back to about $65 after its competitor, Annovis Bio, posted disappointing data for its Alzheimer’s candidate.

However, weakness is a great opportunity with this stock.

Since pulling back on the Annovis news, the SAVA stock is already back over $100 and could easily run back to $146.16, near-term. All after the company announced positive cognition data with its Simufilam treatment in Alzheimer’s disease. Not only has the company secured funding from the National Institutes of Health (NIH), but a recent clinical study found that Simufilam showed an 18% improvement in its cognition test.

In addition, analysts at B. Riley just raised their price target on SAVA to $145 a share.

Cassava Sciences may have massive potential in front of it.

Anavex Life Sciences (AVXL)

doctors posing. retirement stocks

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Anavex has been another high-flying Alzheimer’s treatment stock. Over the last several months, the stock popped from about $11 to over $30 before pulling back to $18.

I’d use weakness in this stock as an opportunity to buy. At the moment, AVXL is consolidating at support at $18.50, and could rally back to $27.13 with patience.

Analysts are just as bullish, with Cantor Fitzgerald analyst Charles Duncan raising his price target to $40 from $31 a share.

Most impressive, the company just reported that its ANAVEX 2-73 could help treat Alzheimer’s.  According to the company, its ANAVEX 2-73 treatment helped prevent “Aβ25-35-induced biomarker-correlated cognitive impairments,” as noted in a company press release.  Helping even more, medical journal Expert Opinion on Therapeutic Targets, as highlighted by Motley Fool contributor Eric Volkmanfound that Anavex Life Sciences treatments could be “very effective.”

Technically, there’s a lot to like here, too. After dropping to $18 support, AVXL is wildly oversold on relative strength (RSI), MACD, and Williams’ %R.  From here, I’d like to see the stock initially refill its gap around $22 a share.  From there, should the company continue to produce impressive results, a test of $27.13 highs isn’t out of the question.

Alzheimer’s Disease Stocks: Annovis Bio (ANVS)

stethoscope on a stock chart representing healthcare stocks to buy

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Annovis Bio is another hot Alzheimer’s stock to keep an eye on.

After presenting data at the 2022 Alzheimer’s Association International Conference, the stock gapped significantly lower.  All after it was found that, “Annovis’ drug called Posiphen showed ‘positive trends,’ but the results weren’t statistically significant,” as noted by Investors’ Business Daily contributor Allison Gatlin.  While that news crushed the stock, the company is still confident the drug can help treat Alzheimer’s.

Technically, there’s a lot to like about ANVS, as well.  After gapping from about $130 to $40, ANVS stock caught strong support just above its 200-day moving average.  RSI, MACD, and Williams’ %R are all overextended in oversold territory.

With plenty of investors flooding back into the stock, ANVS could eventually refill its bearish gap around $110 again, with patience.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.


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