Update-5 Traders alert! a green tape showed up.
Update-4… Biotech stocks continue to sink along with momentum driven overvalued tech stocks. Not much you can do but hold large cap dividend producing stocks. Or look for proven winners that were carried down with the indices. Both the IBB and XBI are at 52 week lows. First look at our favorite large cap biopharma stocks:
- ABBV, BMY, GILD, RHHBY are holding up well and provide dividends.
- MRK and PFE are good holds but more volatile than you would expect. GSK is a good stock for dividend (4.88%) seekers.
- Regeneron (REGN) is at the lower midpoint of its two month trading range in choppy trading. We raised a little cash but will hold the balance for the long term. Analysts rate the stock at 2.1 which is still an outperform.
- Vertex Pharmaceuticals (VRTX) is up about six points this week from the nice base at $220 and way up from the $180 level where we picked it. See the comments on the updated pipeline on Seeking Alpha.
Gene Therapy stocks are in the red again but you may want to nibble on Biomarin (BMRN) with a1.7 analyst rating and an EPS turnaround forecasted. At a price of $88 downside should be limited to $84.
We nibbled on EVOL Health (EVOL) at $26 showing a nice comeback from $22 in a tough week. Analysts rate it a strong buy at 1.5. The bet is for an EPS turnaround for this health information systems Company.FEB 23 is earnings report.
Update-3 Same lackluster tape with little investor appetite for small and mid-cap life science stocks. I still need to catch up on many virtual presentations. Many good companies with high $B valuations but without financials and revenue growth to back them up. Momentum is gone but Vir Biotechnology soared 15% to $40 on a deal with Glaxo and US Gov to supply more COVID antibody doses.
I reviewed the Cryoport(CYRX) Presentation from the JPM Conference and still like the stock as a hold. The Company is a leader in logistics and supply chain solutions for cellular therapies especially because of the need for ultra low cryogenic temperatures (-190 deg). However with two major acquisitions and a $350M convertible debt financing we may have to wait until the Feb 28 financial reporting for detailed analysis.
Update-2 …1/12/22…11a Biotech lethargic on Day 3 of JPM Conference, IBB down 0.9% at $142, XBI down 1.76% at $102. Biogen stock tumbles on Medicare reimbursement cut impacting sentiment for sector? LLY off 4.2%.Major indices up but fading. Missed trade yesterday Illumina (ILMN) on business update but flat today at $420. Valuation parameters still too high on ILMN : P/E,PEG, P/S. ILMN needs an upgrade. No help for PACB near new lows at $14.
Updates at close on a red tape day.
Update-1 1/10/12 Large cap biotech stocks got a nice buy-in today and the IBB tried to form a bottom at the $140 level up over 1% to the $142 level. All of our stocks to watch and recent picks were up as result of good presentations today on pipeline and guidance. BMY up 3.62% to $65 level, REGN up 2.91% to $621 and VRTX up 0.95% to 223.96. Seeking Alpha has a good review and analysis of the Vertex pipeline. All financials will be summarized at a later post. The XBI was flat but on huge volume at the $103 level at least showing interest from traders.
Biotech Boost This Week; Stocks to Watch
- Need good presentations and positive guidance from large cap biopharma.
- Small and mid cap sentiment shift on clinical updates and deal news.
- Technicals bounce on small cap biotechs off bottom XBI.
Healthcare stocks took a 4.65% hit over the past week along with many growth stocks. The NASDAQ was also down about 4.5% in one of the worst sell-off weeks of the year. The DOW was flattish and cyclicals continue to lead the way with the S&P 500 Energy index up 10.6%, Financials up 5.36% and Commodity indices showing strength. We are looking for a biotech boost this week from the JPMorgan Healthcare Conference and the beginning of the pivotal earnings season. Many Companies will present news updates and guidance for 2022 and some analysts believe January sets the pace for the year. But the FED commentary last week convinced many growth investors that higher interest rates in a good economy favor value stocks. Many small and mid cap biotech stocks are overvalued and with a banner year in IPOs it is harder to pick the winners.
Here are some of our large cap picks to watch for updates on Day One :Bristol-Myers (BMY) a laggard at $62.83 with a 3.51% div,, Regeneron (REGN) recently sold off to $603.73 but we expect news to boost the stock, Vertex Pharmaceuticals VRTX) with a nice rally to $221.85, one of our best recent picks.
Several other large cap biopharma companies are presenting on Monday: Biogen, Gilead Sciences, Moderna, Pfizer and Merck.