Large Cap Biopharmaceutical Growth Stocks
With the MoMo days over the next earnings cycle (Q1,Q2 2014) should give us better clarity on winners for 2014.On the last day of March all of these large caps rallied after a severe one week correction from 3/21-28. Watch the technicals this week for bargain hunting, for example, Amgen, Biogen and Gilead had 2+% gains on good volume on 3/31. The IBB is trading right at its February 6 low near $236 up 4.1% YTD.
- Abbvie, Amgen and Bristol Myers should be seen as value stocks based on their Price/Sales, PEs ratio and dividend.
- Alexion and Regeneron are the most expensive stocks as measured by their P/S, Current PE and Forward PE. These two stocks will need to deliver 40-50% revenue growth with lower PEGs.
- Several stocks are down for the year: ABBV, BMY, GILD and are about 10% off 2014 all time highs. Celgene (CELG) is off 17% YTD and 11% over 6 mos.
- These large cap stocks are core holdings for biotech investors and will need to lead the way out of the current correction. A portfolio of at least 3 of these stocks should be owned, or the mutual fund Fidelity Select Biotechnology (FBIOX).
|Company||Ticker||Price||Market||2014 Rev||P/S||F P/E||PEG||B/Sh||Stock||1 yr.||52 wk||Curr. PE|
|source data:FINVIZ and Yahoo|
Note: PEG and P/S data vary depending on 2014 revenue and earnings forecasts.