Drug and diagnostic technology businesses are what make up the biotech industry. Before they can be approved by the U.S. Food and Drug Administration, many goods must undergo extensive, expensive, and time-consuming testing. Investors may have to wait years to find out if a medication under development is profitable. As well as smaller, newer start-ups, there are also giant, well-established firms working to create a variety of new medications and technologies.
Pandemic-related vaccines and therapies are now either the main focus of or part of the commercial pipeline of several biotech firms. According to the iShares Nasdaq Biotechnology ETF (IBB), biotech companies have, in total, returned 14.1% over the past year.
As a result of the virus, biotech stocks were closely watched in 2020 and early 2021, but the uncertainty has created some attractive trading opportunities. Beginning with the current pandemic, the biotech sector as a whole has been ignited with renewed enthusiasm. Most people place a high priority on their health, making biotechnology stocks attractive long-term investments.
Let’s briefly look at just a few biotech stocks that analysts are telling us to keep in mind when adding to our portfolios…
Beam Therapeutics, Inc. (BEAM)
Beam Therapeutics Inc. (BEAM) is a biotechnology firm that develops DNA-based editing technologies to treat infectious diseases in humans. Its licensed technology platform gives users access to base editing technologies and other technologies that expand the breadth of base editing. On January 25, 2017, David R. Liu, Feng Zhang, Alexis Komor, Nicole Gaudelli, and J. Keith Joung founded Beam Therapeutics in Cambridge, Massachusetts.
BEAM stock has increased in value by 339.99% in the last year. The consensus price target for Beam Therapeutics Inc from analysts that provide 12-month price forecasts is 97.00, with a high estimate of 150.00 and a low estimate of 62.00. The median estimate implies an increase of 7.41% from its current price. Analysts also project quarterly EPS (earnings-per-share growth and annual sales growth. In Q1 of 2021, 18 hedge funds monitored by Insider Monkey reported owning stakes in BEAM, up from 14 funds the previous quarter. Its most recently reported dividend yield was 1%. The current consensus among financial analysts polled is to purchase BEAM stock, and since May, its buy rating has been constant.
Moderna Inc. (MRNA)
Moderna (MRNA) is a big biotech company that we should all be familiar with by now, some of us perhaps on a personal level. It’s a well-regarded player in the industry that finds and develops messenger RNA medicines and vaccines at the clinical stage. Prophylactic vaccines, intratumoral immuno-oncology, cancer vaccines, localized regenerative therapies, systemic secreted therapeutics, and systemic intracellular therapeutics are among the modalities in its product pipeline. Noubar B. Afeyan, Robert S. Langer, Jr., Derrick J. Rose, and Kenneth R. Chien formed the firm in 2010, and it is based in Massachusetts. MRNA is a major vaccine provider to the United States, and has engaged in agreements with other countries and international organizations to broaden the delivery of the vaccine.
MRNA has a consensus price target of 194.00 among the analysts that provide 12-month price forecasts, with a high estimate of 299.00 and a low estimate of 83.00. The median estimate is down 43.83% from the current price. MRNA is set to report their earnings on August 8th, but in the meantime, they’ve boasted a whopping $4.2 Billion in sales, with an EPS (earnings per share) of $5.96. Analysts also project both annual and quarterly growth in Moderna’s sales and EPS. The current consensus among financial analysts polled is to buy MRNA shares.
Vanda Pharmaceuticals Inc. (VNDA)
Vanda Pharmaceuticals Inc (VNDA) is a multinational biotech firm that develops treatments for conditions including non-24-hour sleep-wake-disorder and schizophrenia. The firm specializes in the research and marketing of medicinal solutions for a range of severe medical conditions. In addition, VNDA plans to treat jet lag, atopic dermatitis (eczema), and central nervous system problems. HETLIOZ, Fanapt, Tradipitant, Trichostatin, and AQW051 are among the company’s products. Mihael Hristos Polymeropoulos and Argeris N. Karabelas started the firm in 2002, and it is based in Washington, DC.
Considered a fast-grower, the consensus price target for VNDA from analysts who provide 12-month price forecasts is 24.00. From its current price, the median estimate implies a 34.60% gain. The company doesn’t report again until November 10th, but in the meantime, they’ve shown $74.3 Million in earnings and an EPS of 19 cents per share. Analysts also project annual and quarterly growth in both these areas. 14.9% sales growth is predicted for next year, and its EPS is projected to rise to 61 cents per share, with a growth estimation of 77% over the next five years. The consensus among polled investment analysts is to buy stock in VNDA, and its buy rating has been steady since May.
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