Biotech stocks have been on fire this year thanks to speculation about potential vaccines or treatments for Covid-19. It appears that the biotechnology industry has attracted a lot of attention. After all, there’s a lot of uncertainty in the economy and the stock market. Biotech stocks, as measured by the iShares Nasdaq Biotech ETF (IBB Stock Report), started to rally furiously since the beginning of 2020. And because of that, investors have been looking for the top biotech stocks to buy.
No matter how you slice it, biotech stocks are inherently volatile in nature. This is especially true in small-cap biotech stocks where many of their drug candidates dazzled in the lab only to fizzle in clinical trials. And when that happens, stock prices could plunge significantly. That is if there are no other drugs in the pipeline that could sustain the companies. Given that more attention is on coronavirus vaccines, perhaps having a list of top biotech stocks with the strongest prospect would be beneficial. Leaders so far in the process include Moderna (MRNA Stock Report), BioNTech (BNTX Stock Report), and Inovio Pharmaceuticals (INO Stock Report).
For investors looking for places to put their money in the midst of a coronavirus pandemic, biotech companies could hold promise now and in the future. There is no perfect time for investors to focus on the biotech space. The industry stands to see stock price gains even when the pandemic is over. With all that in mind, are these biotech stocks on your watchlist this month?
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First, up the list, shares of Regeneron Pharmaceuticals (REGN Stock Report) have soared more than 70%. With the stock reaching record-high levels, some investors may feel like selling to buy back at a lower price. The company’s antibody mixture against the COVID-19 is unique. That’s because it could potentially be used to treat the novel coronavirus and prevent healthy individuals from contracting the disease. If approved, it would be revolutionary and bring huge cost savings for health systems.
The robust financials of Regeneron also make it one of the top biotech stocks to watch in the market. Apart from developing a cutting-edge therapy to combat COVID-19, it is reported that the company has seen minimal disruption from the pandemic itself. During the first quarter of 2020, Regeneron’s revenue and net income stood at $1.8 billion and $771 million, respectively. That represents a growth of 33% and 48% compared with the same period last year. Investors should also note the massive funds of $3 billion deployed to research and development of new therapies last year. With all factors taken into consideration, REGN stock remains an attractive biotech stock to watch in the long run.Top Biotech Stocks To Watch In August: Novavax
There is a reason for optimism when it comes to Novavax (NVAX Stock Report). Despite having soared more than 3,000% year to date, the company could expect another breakout should the interim clinical data come in favorably. Of course, with one massive breakout following another, NVAX stock is the best performing US-listed stock in 2020. But the billion-dollar question here is, does Novavax stand a chance of winning the vaccine race? This is considering Moderna and AstraZeneca (AZN Stock Report) are way ahead in clinical trials.
For those of you who are regular readers of StockMarket.com, we have been saying that the vaccine program is not a winner takes all business. That said, if the other rivals stumble during trials, Novavax could move ahead. Even if another company makes it to the finish line first, Novavax’s vaccine may produce stronger immunity. And if so, the company could still have a big cut of the pie. Of course, any disappointment from the clinical trials could send NVAX stock on a free fall. Clearly, after such massive breakouts, this biotech stock is more suitable for those who don’t mind the risk and are willing to buy high to sell higher.