5 Biomedical Stocks That Are Expected To Surge

At Zacks, we understand that investors are constantly searching for growth opportunities. Every investor struggles with balancing risk and reward when choosing their investments. Biomedical companies are known to offer large capital gains and growth prospects, yet they do not always come to fruition.

However, President Donald Trump has stated on multiple occasions that he plans to eliminate restrictions on drug development for the FDA. This policy would positively affect biomedical companies, as their products would reach the open market more easily and frequently. Certain biomedical companies will pose a stronger investment as the FDA revises their drug development standards.

With the promise of regulatory reform on the horizon, investors have been excited about the biomedical space throughout the year. If you want to add some to your portfolio, check out these 5 biomedical stocks that are primed to skyrocket here:  

1. Regeneron Pharmaceuticals, Inc. (REGN - Free Report)

Regeneron Pharmaceuticals is a biopharmaceutical company that develops and intends to commercialize drugs for the treatment of serious medical conditions. Regeneron touts a RoE of 22.99% and Net Margin of 19.34, both of which compare favorably to the industry. Additionally, its share price has increased by 48.85% over the past year. And since the company scored a “B” grade for Growth, we expect the company to continue to grow and outperform the market.

Also, Regeneron reported a Cash Flow per share of $10.05, which towers over the industry average. This means that Regeneron is successfully utilizing shareholder equity in a much more effective manner than its competitors. Regeneron Pharmaceuticals currently sports a Zacks Rank #1 (Strong Buy).

2. Geron Corporation (GERN - Free Report)

Geron Corporation is a scientific research firm that develops treatment techniques for the health services industries. Geron represents a model of consistency, as it has outperformed our earnings estimates by an average of 20.34%. in each of the past nine quarters. The company’s share price has risen 33.03% over the past twelve weeks, which has prompted Zacks to hand Geron an “A” grade for Momentum.

Geron recently formed an agreement with Johnson & Johnson’s Janssen Biotech (JNJ). The agreement will provide Geron with a strong partner and funds. The new license could allow the company to receive up to an additional $900 million on the achievement of development, which bodes well for shareholders. Along with this development, Geron has an astronomical projected sales growth of 247.83% for the next year. In essence, it sounds like it is the right time to purchases shares of Geron Corporation, a stock that currently has a Zacks Rank #2 (Buy).

3. Kadmon Holdings, Inc. (KDMN - Free Report)

Kadmon Holdings is a biopharmaceutical company engaged in the development and commercialization of small molecules to address major diseases. The company demolished their projected earnings last quarter by 22%, andKadmon is anticipated to explode in the near future.

Additionally, Kadmon’s projected EPS growth of 77.89% and current Cash Flow growth of 130.95% towers over the industry averages of 5.52% and 13.76%, respectively. Kadmon received an “A” grade in Growth and “B” grade in Momentum, which means that the stock is projected to increase while the company continues to develop. The company’s current share price is close to its past 52 week low; however, its share price has skyrocketed in the past week by 20.44%. Basically, now might be the perfect time to invest in Kadmon Holdings, which recently scored a Zacks Rank #2 (Buy).

4. Anavex Life Sciences Corporation (AVXL - Free Report)

Anavex Life Sciences is an emerging biopharmaceutical company engaged in the discovery and development of drugs for the treatment of cancer and neurological diseases. Even though this company operates in a rather unpredictable industry, Anavex sports a beta rating of 0.64. Anavex also received a “B” grade for Momentum on our Style Scores system which means its share prices have already been rising considerably.

Additionally, the company’s current Cash Flow growth sits at a whopping 201.66%, meaning that Anavex projects largely positive cash flows in the near future. Finally, Anavex has posted a strong 11.16 Current Ratio. Basically, the company is easily able to pay off its short-term debt obligations to its bondholders. Anavex Life Sciences Corporation holds a Zacks Rank #2 (Buy).

5. Enzo Biochem, Inc. (ENZ - Free Report)

Enzo Biochem develops, manufactures and markets healthcare products based on molecular biology and genetic engineering techniques. Enzo has beaten its earnings estimates in each of the past five operational quarters by an average of 51.33%. Additionally, Enzo received an “A” grade for Momentum, which means that shares could continue to grow on top of its 27.51% increase over the past twelve months. Also, Enzo Biochem’s projected EPS Growth stands at a whopping 65%, which towers over the industry average of 5.52%. And due to its solid earnings estimates, Enzo Biochem received a Zacks Rank #2 (Buy).

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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Craig Newman 7 years ago Member's comment

Not any time soon! They have to wait for the Healthcare Bill to pass before traders spend another dime!