In the financial markets, not everything always goes up, not everything always goes down. The fluctuations in the share prices of listed companies are constant. For various reasons, there are stocks with very high prices for no reason, often for the simple “animal spirit” of investors, and the same happens the other way around, good companies with excellent horizons whose shares are discounted heavily by the market. This has led to the emergence of oversold pharma stocks.
There are many catalysts in the pharma industry that may lead to their increase. One is the potential widespread reemergence of COVID-19, and another is the aging population in the United States. These catalysts have all led to the increase in stock prices of companies in the pharma industry.
So let’s take a look at 3 oversold pharma stocks that are worth analyzing further.
Sage Therapeutics (SAGE)
Let’s talk about Sage Therapeutics (NASDAQ:SAGE), a company that is dedicated to taking care of people’s health. They want to create treatments for different health problems. If you look at their stock, they have caught people’s attention because they seem to be on sale.
But there’s something else, recently, they talked about their financials, and it’s a bit of a mixed bag. They said they lost $2.68 for each of their shares over a three-month period. Now, that sounds like bad news, but actually, it’s a little bit better than what the experts thought would happen. The experts estimated they would lose $2.55 per share. On the bright side, they made more money, up 64.6% from last year. They made $2.47 million, but that’s a little less than everyone thought they would make at $2.94 million.
Although they’ve had some money problems, they still have good prospects for the future. Experts who have studied them say Sage could make more money than they thought. In the last three months, experts changed their minds and said they could do better.
So, their stock has had a rough time. They’re down 23.2% in the last three months and lost 5.3% for the full year. That’s probably one of the reasons its shares are considered to be on sale.
But there is also good news. Sage partnered with another company called Biogen Inc. (NASDAQ:BIIB). Together, they have created something special, a treatment for the feeling of sadness that some mothers have after having a baby. They have gotten FDA clearance, and it will be in stores later this year. They just need one more check from the people who keep an eye on this sort of thing, and they’ll probably get that in the next 90 days.
Revance Therapeutics (RVNC)
Now meet Revance Therapeutics (NASDAQ:RVNC), a company dedicated to creating specialty drugs that do more and last longer. It’s like turning a regular drug into a super drug.
Right now, their stock is like a great deal in a store, it’s cheap and could be more valuable down the road.
In the last three months, they made a lot of money, $58.1 million! That’s more than double what they made last year in the same period. Some of this money came from a drug called RHA, which generated $31.8 million. They also have another drug called DAXXIFY, from which they made $22.6 million. This helps make it one of those oversold pharma stocks to buy.
They also have a notorious amount of money saved. They made $100 million in profits and have $50 million ready to use when they need it.
But the most exciting news is about their special drug, DAXXIFY. The FDA has declared that DAXXIFY can be used to help people with a condition called cervical dystonia. This is a condition where the muscles do not behave correctly. This is very good for them because now it can help a lot of people and also enter a big market in the United States, which is worth $2.5 billion This special drug lasts longer and works better for the people who need it.
Apellis Pharmaceuticals (APLS)
Last but not least, it is the turn of Apellis Pharmaceuticals (NASDAQ:APLS), a company dedicated to finding new ways to treat serious health problems.
Financially speaking about them, they did better than people thought. In the last quarter, they lost less money than the experts assumed, $1.02 per share instead of $1.32. And guess what? They made a ton of money: 481.8% more than last year. They made $94.97 million, and that’s a lot more than the $70.25 million everyone expected.
Although they are doing well, their shares are down a lot, down 64.9% in the last three months and down 38.1% for the whole year. They also said they lost $122.04 million in the last quarter. But there’s not much to worry about, because even on Wall Street they believe the company can turn things around. They think the stock will be worth $92.50 a year from now.
They also showed some interesting things at a medical event. They talked about a treatment for an eye problem. So, while Apellis faces some challenges, it continues to strive to make the world a healthier place and looks good for growth.
As of this writing, Gabriel Osorio-Mazzilli did not hold (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.