I hope you’re having a fantastic holiday!
I’m spending the season with friends and family, but as my long-time readers already know by now, my mind is never far from the markets. I’m always thinking about the next big opportunity that’s poised for hypergrowth — even when I’m “relaxing.”
The way I see it, 2020 is shaping up to be the “Year of Biotech.” I’m not the only one. My colleague Louis Navellier and I just released our thoughts on 2020 and what you need to do to set yourself up for what we anticipate will be a gangbusters year for stocks. Louis and I handpicked nine companies we believe will be the biggest winners of 2020.
We combined my big picture “top down” approach with Louis’ quantitative, numbers-driven “bottom up” style to come up with our list. And it probably won’t surprise you to learn that biotech is included in the mix.
But here’s the thing …
Our research and analysis have identified another stock with big potential in 2020. When we saw it, we absolutely had to add it to our list and let everyone know right away.
Cashing in On the Year of Biotech
Many stocks in the biotech sector have begun to thrive after four years of mostly sideways movement.
Below, you can see how at the beginning of the year, the Nasdaq Composite (the orange line) started to break away from the biotech sector, represented by the industry bellwether exchange-traded fund (ETF), the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB, the blue line).
Politics and calls for Medicare for All, as well as plans to drastically scale back drug prices, were a downer for the industry. But notice that in October, the biotech ETF starting to take off again. Now it’s running neck and neck with the Nasdaq.
The SPDR S&P Biotech ETF (NYSEARCA:XBI) has climbed about 36% so far this year and is trading at 52-week highs following a wave of acquisition deals sweeping over the sector.
By 2024, research firm EvaluatePharma expects the global cancer-drugs market will nearly double from $123 billion today.
Industry heavyweights have been on a buying spree, grabbing smaller firms that specialize in treatments for cancer and autoimmune disorders.
Combine that with quick and less-costly clinical trials for new cancer drugs, a willingness by insurance companies to pay $100,000 or more for some treatments, and relatively cheap prices for biotech stocks, and you start to see serious momentum building for the sector on the verge of some amazing breakthroughs.
That doesn’t mean every up-and-comer will be a winner. This is a complicated market, and you must choose carefully to get the kind of gains I’m looking to win with my subscribers.
Which brings me back to our latest recommendation …
An Emerging Blockbuster
This emerging global biotech popped up on our radar screens for all the right reasons.
The company already has a massive blockbuster drug under its belt. Better yet, its patent is still in its youth — meaning it has many years’ worth of exclusive revenue ahead. The drug has already cornered significant market share and keeps expanding.
But this company is far from a one-trick pony.
The firm is partnering with an industry behemoth on another drug and is looking to add an indication — approval for another reason to use the drug — after successful Phase 3 trials.
It also has several other drugs in the pipeline that target major diseases.
When it comes to the bottom line, this biotech is on solid footing. It’s seen outstanding revenue growth in the most recent quarter and analysts expect revenue to climb steadily over the next two years.
Best of all, the stock is relatively cheap when you consider its bottom-line growth potential over the next five years.
That’s why Louis and I absolutely had to get this 2020 recommendation in front of our readers.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.