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5 Biotech Stocks That Are Roaring Back to Life

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While the broad market drifts lower in trading on Wednesday for the second day, biotech stocks and pharma stocks are blasting to the upside in a rare show of strength amid a week of weakness.

5 Biotech Stocks That Are Roaring Back to Life

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The catalyst? Reports that the White House's executive order on drug pricing - something President Trump has frequently touched on - may not be released for weeks.

As a reminder, Trump has said he wanted to allow the government to bid on drugs to lower costs. As it is now, drug/biotech companies are "getting away with murder" in his words.

Wall Street seems to be interpreting this headline as either representing a potential softening of Trump's positions - amid his aim of holding meetings with industry officials to find a way forward - or possibly even a tabling of the issue given other priorities, such as tax cuts and healthcare system reform.

Whatever the specific motivation, the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB ) has surged some 10% so far this month to break above a two-year resistance level near $300 and it hit highs not seen since early 2016.

With that in mind, here are five biotech stocks on the move:

Surging Biotech Stocks: Amgen (AMGN)

Amgen, Inc. (NASDAQ: AMGN ) shares are pushing to four-month highs, closing the gapped decline in March and setting up a test of the prior highs above $180, which would be worth a 6% gain from here. AMGN shares remain within the confines of a four-year consolidation range between $180 to the upside and $130 to the downside.

Amgen will next report results on July 26 after the close. Analysts are looking for earnings of $3.08 per share on revenues of $5.68 billion. When the company last reported results on April 26, earnings of $3.15 per share beat estimates by 14 cents on a 1.1% decline in revenue.

Surging Biotech Stocks: Celgene (CELG)

Celgene Corporation (NASDAQ: CELG ) shares are surging more than 4% in mid-day trading, testing the mid-2015 highs and rising more than 40% from the late-2016 low. CELG shares got a nice lift from the test of the 200-day moving average near $116 at the start of the month and haven't looked back.

Celgene will next report results on July 27 before the bell. Analysts are looking for earnings of $1.61 per share on revenues of $3.25 billion. When CELG last reported results on April 27, earnings of $1.68 per share beat estimates by 5 cents on a 17.8% rise in revenues.

Surging Biotech Stocks: Biogen (BIIB)

Biogen Inc (NASDAQ: BIIB ) shares are up 4% in mid-day trading, crossing above the 200-day moving average to make another run at three-year overhead resistance near $310. Merely a retest would be worth a 12% gain from here.

BIIB will next report results on July 25 before the bell. Analysts are looking for earnings of $4.4 per share on revenues of $2.8 billion. When the company last reported results on April 25, earnings of $5.20 per share beat estimates by 22 cents on a 3.1% rise in revenues.

Surging Biotech Stocks: Regeneron Pharmaceuticals (REGN)

Regeneron Pharmaceuticals Inc (NASDAQ: REGN ) shares are going parabolic, surging 5.4% in trading at levels not seen since Jan. 2016. Watch for a run to the 2015 high near $600, which would be worth a 15%+ gain from here. The company was upgraded by Piper Jaffray analysts on Tuesday, with a new $557 price target.

REGN will next report results on Aug. 3 before the bell. Analysts are looking for earnings of $2.67 per share on revenues of $1.36 billion. When the company last reported results on May 4, earnings of $2.92 per share missed estimates by 15 cents on a 9.8% rise in revenue.

Surging Biotech Stocks: Gilead Sciences (GILD)

Gilead Sciences, Inc. (NASDAQ: GILD ) shares are the turnaround play of the bunch, mired in a strong and persistent downtrend from its 2015 high near $117.50. A break above the 200-day moving average would signal a change in trend ahead of a possible test of the summer 2016 highs near $85, which would be worth a 25% gain from here.

GILD will next report results on Aug. 1 after the close. Analysts are looking for earnings of $2.10 per share on revenues of $6.25 billion. When the company last reported results on May 2, earnings of $2.23 per share missed estimates by 5 cents on a 16.5% decline in revenues.

Anthony Mirhaydari is founder of theEdge(ETFs) andEdge Pro(Options) investment advisory newsletters. A two-week and four-week free trial offer has been extended to Investorplace readers.

The post 5 Biotech Stocks That Are Roaring Back to Life appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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