Slide 0
3 Biotech Bargains To Buy
Slide 1
Biotech’s bursting bubble
Between December 2012 and July 2015 Biotech Stocks Soared.
The NASDAQ Biotechnology Index ETF gained 179%.
Since July 2015 Biotech Stocks have crumbled.
The NASDAQ Biotechnology Index ETF has fallen by 14.7%
Biotech stocks lost $40 billion in value alone on Monday September 21.
Slide 2
3 Biotech bargains to buy
#1: Celgene Corporation
Shares have dropped 13.2% since July.
Shares are trading at 18.2 times 2016 EPS.
Revenue grew 21.6% year-over-year in Q2.
Analysts expect EPS to grow 24% next year.
But, that’s not even why I really like this company…
Slide 3
Celgene continued…
The real reason I like Celgene’s stock is because:
Celgene is guiding for $21 billion in sales in 2020.
And that’s up from sales of $7.67 billion in 2014.
Which is an increase of more than 173%.
Slide 4
3 Biotech bargains to buy
#2 Gilead Sciences
Shares have dropped 12.7% since July.
Revenue grew 26.2% year-over-year in Q2.
Analysts expect EPS to grow 44% this year.
Gilead Sciences is guiding for >$29 billion in sales in 2015.
Up from prior guidance for >$26 billion exiting 2014.
But there’s one more very big reason why I think Gilead is a buy.
Slide 5
Gilead Sciences continued…
And that’s because
Gilead Sciences shares are trading at only 8.6 times analysts EPS estimate for next year.
Slide 6
Gilead Sciences continued…
And that means that shares can be bought when Gilead’s P/E is near 10 year lows.
Slide 7
3 Biotech bargains to buy
#3 Biogen Inc.
Shares are down 30.6% since March.
Shares are trading at 16 times 2016 EPS.
Revenue grew 7% year-over-year in Q2.
Analysts expect EPS to grow 12% next year.
Biogen is guiding for >6% sales growth in 2015.
And yet there’s one more reason why this bellwether can be owned.
But there’s also another reason to consider this bellweather.
Slide 8
Biogen continued…
Because Its earnings and its cash stockpile are at record highs.
Slide 9
