The biotechnology sector doesn’t need to rizz up investors, as the kids like to say. Unless the human desire to find solutions for vexing conditions and diseases somehow goes away in a dystopian paradigm, the ecosystem is safe. I’d venture to say that it’s permanently relevant. However, that doesn’t necessarily mean you should buy any example of biotech stocks that come your way.

To be sure, if there was a space in which you were forced to take blind wagers, the biotech environment would be an ideal candidate. According to Grand View Research, the global biotech market reached a valuation of $1.55 trillion last year. Experts believe that from 2024 to 2030, the segment could expand at a compound annual growth rate of 13.96%. By the culmination point, the sector could be worth $3.88 trillion.

However, the sector faces significant risks – it’s not the most predictable industry. One bad clinical result can send enterprises tumbling. Because of this dynamic, it may pay to consider temporarily deflated ideas. With that in mind, below are biotech stocks to buy on the dip.

Jazz Pharmaceuticals (JAZZ)

Based in Ireland, Jazz Pharmaceuticals (NASDAQ:JAZZ) develops and commercializes pharmaceutical products addressing unmet medical needs. The company specializes in neuroscience, oncology and sleep medicine. Fundamentally, Jazz is one of the biotech stocks to consider for its innovative treatments, including for narcolepsy and certain cancer types.

On paper, Jazz needs a win, especially with its second-quarter earnings report coming up soon. In the past four quarters, the company posted an average earnings per share of $4.26. Unfortunately, experts anticipated a collective consensus view of $4.68 during the period. This translated to a negative earnings surprise of 9.75%. In particular, the Q1 print wasn’t pretty.

Still, if there is a silver lining, it’s the valuation. Right now, JAZZ stock trades for 5.56X forward earnings and 1.97X trailing-year sales. Between Q1 2023 to Q1 2024, these metrics stood at 6.94X and 2.3X, respectively.

Analysts see steady expansion over the next two years. By fiscal 2025, EPS could be $20.72 on sales of $4.35 billion. Last year, Jazz posted earnings of $18.29 per share on revenue of $3.83 billion. Thus, it’s one of the biotech stocks to keep on your clinical radar.

Takeda Pharmaceutical (TAK)

A global, research-based biopharmaceutical enterprise, Takeda Pharmaceutical (NYSE:TAK) focuses on various fields, particularly oncology, gastroenterology, neuroscience and rare diseases. It’s an important enterprise among biotech stocks thanks to its vast portfolio. Further, the company is renowned for its robust research-and-development pipeline.

Currently, TAK stock hasn’t performed well in the market. Since the beginning of the year, shares have lost about 5% of equity value. In the past 52 weeks, they’re off the pace by roughly 12%. Heck, the five-year return looks ugly, with stakeholders incurring a 19% loss. Frustration is building understandably against the company.

Still, if we want to talk about silver linings, it’s again the valuation. Right now, the market prices TAK stock at a revenue multiple of 1.58X. In the prior year, the multiple stood at 1.68X. The high point in the aforementioned frame was nearly 1.8X. Thus, TAK could rise to its prior valuation.

Analysts see sales rising 8.7% to $28.85 billion by year’s end. Some sources state that it’s “million” but I’m almost certain it’s “billion” due to the company’s longstanding financials. Anyways, it’s one of the biotech stocks to watch.

Pacira BioSciences (PCRX)

Headquartered in Tampa, Florida, Pacira BioSciences (NASDAQ:PCRX) is a non-opioid pain management and regenerative health solution enterprise. Its flagship product is Exparel, which is used for post-surgical pain control. Fundamentally, PCRX ranks among the top biotech stocks to consider because of its specialty in non-opioid solutions.

As with other entities in the space, Pacira could use a momentum boost. In the past four quarters, the company posted an average EPS of 75 cents. However, this narrowly missed the collective consensus view of 76 cents, thus yielding a negative earnings surprise of 1%. Still, the subsequent sharp drop in the market – down almost 38% year-to-date – presents a speculative idea.

Again, we must talk valuation. Right now, PCRX stock trades at a forward earnings multiple of 7.47X and a sales multiple of 1.57X. In contrast, over the prior year, the metrics stood at 10.03X and 2.47X, respectively.

Enticingly, analysts anticipate expansion in the top and bottom lines to fiscal 2025. By the culmination point, EPS could be $3.64 on revenue of $760.61 million. Last year, EPS was $2.81 on sales of $674.98 million.

On the date of publication, Josh Enomoto 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.