3 Biotech Bargains To Buy
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.
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…
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%.
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.
Gilead Sciences continued… And that’s because Gilead Sciences shares are trading at only 8.6 times analysts EPS estimate for next year.
Gilead Sciences continued… And that means that shares can be bought when Gilead’s P/E is near 10 year lows.
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.
Biogen continued… Because Its earnings and its cash stockpile are at record highs.