Biotech Investing Guide: 3 Stocks To Buy And 3 To Avoid

3 Biotech Stocks to Add to Your Portfolio

Anyone interested in biotech stocks will know that it could be challenging to pick winners in this industry which is constantly growing and changing. While the major price correction has resulted in attractive valuations, we nevertheless advise investors to exercise caution while selecting stocks. Factors like pipeline setbacks, competition and regulatory actions could change the story overnight for seemingly well positioned stocks.

However, based on favorable Zacks Ranks, we have zeroed in on 3 biotech stocks with strong fundamentals and growth potential.

First on our list is Foster City, CA-based Gilead Sciences Inc. (GILD - Analyst Report). Gilead, a Zacks Rank #2 (Buy) stock, has been consistently seeing upward revisions in earnings estimates. Gilead’s performance has been impressive with the company surpassing earnings expectations all throughout 2015. The company, which is well known for its presence in the hepatitis C virus (HCV) market, also has a strong hold in the HIV market. In addition to having several blockbuster products in its portfolio, Gilead has a strong late-stage pipeline.

Celgene Corporation (CELG - Analyst Report), another Zacks Rank #2 stock, looks well-positioned for growth. Revlimid should continue performing well driven by increased duration of treatment and market share gains. Celgene also has a strong and diversified pipeline that bodes well for long-term growth. The Summit, NJ-based company has been making prudent acquisitions and entering into deals to bolster its pipeline.

Thousand Oaks, CA-based Amgen Inc. (AMGN - Analyst Report) is another Zacks Rank #2 stock with a strong earnings track record. The company has already started the year on a strong note by raising its outlook. While legacy products will continue contributing to the top-line, Kyprolis looks well-positioned to gain share with both the ASPIRE and ENDEAVOR data in its U.S. label. Amgen’s pipeline is also progressing with quite a few candidates under regulatory review and important late-stage data readouts lined up for 2016. A big catalyst this year could be positive top-line data from the ongoing phase III cardiovascular outcomes study data on PCSK9 inhibitor, Repatha.

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

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