In this article, we will take a look at the 11 best genomic stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Genomic Stocks to Buy Now.
Genomics is a branch of biology that studies the structure, function, evolution, mapping, and editing of genomes, which refer to the complete set of DNA of an organism, as opposed to genetics, which is the study of individual genes. With the rapid advancements in technology, it has become quite convenient to utilize genomes in detecting diseases and developing a well-informed diagnosis. With the COVID-19 pandemic affecting the global mortality rate, governments are realizing the importance of genomics now more than ever.
The first time genomics gained the interest of investors and governments was in 1990, when the Human Genome Project commenced. It took 13 years to reach fruition, and $2.7 billion dollars were spent on extensive research with the hope that mapping all the genes of the human genome would revolutionize healthcare and future standards of living.
Today, governments are once again taking a keen interest in genomics, which is why they are investing steadily in the research and the development of new technologies in the field of genomics.
In February 2019, Genome Canada received a funding of $22.7 million by the Canadian Minister of Science and Sport, as well as $33.4 million by provincial governments to sponsor 36 projects. These projects diligently work to improve the lives of Canadian citizens with the help of genomics-based technologies that Genome Canada specializes in.
Similarly, in September 2019, pharmaceutical companies partnered with health experts and scientists to study the sequence of the genetic code of 500,000 volunteers at the Stockport-based UK Biobank. The project had a budget allowance of $224 million and aimed to improve genomics research to target cancer, cardiovascular diseases, diabetes, arthritis, and dementia, among others. The goal of this project was to enhance preventative measures, improve diagnosis, and configure better treatments.
Lastly, the Indian Department of Biotechnology launched the “Genome India Project” in January 2020. The project’s objective was to build a reference genome by collecting genetic samples from 10,000 Indian volunteers. The Genome India Project focuses on precision health, unique genetic disorders and mutations, translational research, and the genetic epidemiology of complex diseases found in the Indian population.
Forecasts state that the global genomics market will reach $54.4 billion by 2025, up from $22.7 in 2020, suggesting a CAGR of 19% during the forecast years. The market for genomics will flourish because of the interest in this field of study by governments globally, the increasing cases of cancer and the widespread use of next generation sequencing in cancer research and treatments, new entrants in the genomics market, and the wider application of genomics due to advancing technology and higher education.
Some of the top genomic stocks include Illumina, Inc. (NASDAQ:ILMN), CRISPR Therapeutics AG (NASDAQ:CRSP), Intellia Therapeutics, Inc. (NASDAQ:NTLA), and Natera, Inc. (NASDAQ:NTRA), among others discussed in detail below.
Photo by National Cancer Institute on Unsplash
Our Methodology
Let’s dive into the 11 best genomic stocks to buy now. We took into account hedge fund sentiments, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks. The stocks are ranked based on their popularity amongst the hedge funds, which was determined by the number of hedge funds that chose to invest in the company as of the end of the second quarter.
Why should we pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Best Genomics Stocks to Buy Now
11. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 33
The eleventh stock on our list of the best genomics stocks to buy now is Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), which is a biopharmaceutical company that focuses on developing and commercializing therapeutics for genetic diseases. The Massachusetts-based company is well-known for its RNAi Therapeutics, which focuses on targeting the root of the genetic diseases rather than the symptoms.
Out of the 873 hedge funds tracked by Insider Monkey, 33 hedge funds held stakes in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), worth over $1.02 billion at the end of the second quarter of 2021. This is compared to the same number of hedge funds in the previous quarter, with stakes amounting to $740 million.
On August 3, the company reported earnings per share of -$1.61, beating analysts’ consensus estimates of -$1.63 by $0.02. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) announced actual revenue of $220.55 million, beating analysts’ estimates by $27.35 million.
On October 4, UBS analyst Esther Rajavelu upgraded Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) from Neutral to Buy, raising the price target to $215 from $141. She assigned the Buy rating due to the company’s potential growth prospects, strong fundamentals, realistically achievable CAGR, and growing diversity in its ranks.
Out of the hedge funds tracked by Insider Monkey, Kurt Von Emster’s VenBio Select Advisor is the largest stakeholder in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), with 1 million shares amounting to $169.5 million.
Like Illumina, Inc. (NASDAQ:ILMN), CRISPR Therapeutics AG (NASDAQ:CRSP), Intellia Therapeutics, Inc. (NASDAQ:NTLA), and Natera, Inc. (NASDAQ:NTRA), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is one of the best genomic stocks to buy now.
10. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Number of Hedge Fund Holders: 34
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a well-known name in the healthcare industry, focusing on medical research and drug development. The company has research facilities and corporate offices in Cambridge, Massachusetts. Sarepta Therapeutics, Inc. (NASDAQ:SRPT) was first incorporated as AntiVirals in 1980, and the name then changed to AVI BioPharma before becoming a publicly listed company. It was rebranded as Sarepta Therapeutics, Inc. (NASDAQ:SRPT) in 2012. As of 2019, the company has two approved drugs and is traded as a Russell 1000 Component. Sarepta Therapeutics, Inc. (NASDAQ:SRPT) ranks tenth on our list of the 11 best genomic stocks to buy now.
At the end of the second quarter of 2021, 34 hedge funds out of the 873 tracked by Insider Monkey held stakes amounting to $539.7 million in Sarepta Therapeutics, Inc. (NASDAQ:SRPT), up from 33 in the previous quarter with stakes valuing at $526.9 million.
The company reported earnings per share of -$1.02 on August 4, surpassing analysts’ consensus estimates of -$1.25 by $0.23. The actual revenue for Sarepta Therapeutics, Inc. (NASDAQ:SRPT) was $164.09 million, beating analysts’ estimates by $2.14 million.
Out of the hedge funds tracked by Insider Monkey, Kurt Von Emster’s VenBio Select Advisor is the largest stakeholder in Sarepta Therapeutics, Inc. (NASDAQ:SRPT), with 2.4 million shares worth $186.5 million.
Artisan Mid Cap Fund, managed by Artisan Partners, explained their position on Sarepta Therapeutics, Inc. (NASDAQ:SRPT) in their Q1 2021 investor letter. Here is what they had to say:
“We ended our campaign in Sarepta Therapeutics. Sarepta Therapeutics is a leader in Duchenne muscular dystrophy (DMD) drug development. Shares were pressured during the quarter amid a disappointing clinical trial outcome for its DMD gene therapy. We believe the odds of FDA approval for this therapy are lower and the timeline longer. Fortunately, we controlled for this risk by keeping this holding in the GardenSM. While Sarepta’s pipeline of gene therapies for neuromuscular disorders remains attractive, we exited our position given this setback. We believe CropSM holding Catalent is a better risk-adjusted way to participate in these opportunities. Catalent is a leader in gene therapy manufacturing and one of Sarepta’s key partners.”
9. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Holders: 34
CRISPR Therapeutics AG (NASDAQ:CRSP) is a Swiss-American biotech company operating from Cambridge, Massachusetts, and is headquartered in Zug, Switzerland. The CRISPR gene-editing platform is being utilized to rapidly develop therapies that treat cancer, diabetes, and hemoglobinopathies, among other life threatening diseases. CRISPR Therapeutics AG (NASDAQ:CRSP) ranks ninth on our list of the best genomic stocks to purchase.
At the end of the second quarter of 2021, 34 hedge funds in Insider Monkey’s database held stakes amounting to $1.76 billion in CRISPR Therapeutics AG (NASDAQ:CRSP), up from 27 in the previous quarter with stakes valuing at $1.4 billion.
The company reported earnings per share of $9.44 on July 29, beating estimates by $6.32. The actual revenue for CRISPR Therapeutics AG (NASDAQ:CRSP) was $900.7 million, surpassing analysts’ estimates by $484.25 million.
Canaccord analyst Arlinda Lee maintained a Buy rating on CRISPR Therapeutics AG (NASDAQ:CRSP) on August 16, raising the price target to $160 from $151. She assigned the rating keeping in mind the upcoming gene-editing programs and trials, which displayed a huge potential for success and would treat a range of life endangering diseases.
Out of the hedge funds tracked by Insider Monkey, Catherine Wood’s ARK Investment Management is the largest stakeholder in CRISPR Therapeutics AG (NASDAQ:CRSP), with 7.77 million shares worth over $1.25 billion.
CRISPR Therapeutics AG (NASDAQ:CRSP)’s partnership with Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) allows it to gain the necessary funding for its clinical trials. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) allotted $900 million to CRISPR Therapeutics AG (NASDAQ:CRSP), which increased the total funding for trials to $2.6 billion. In return, the profit share for Vertex in the project increased from 50% to 60%, since they provide regular funding to keep the trials afloat.
8. Exact Sciences Corporation (NASDAQ:EXAS)
Number of Hedge Fund Holders: 35
The eighth stock on our list of the 11 best genomic stocks to buy now is Exact Sciences Corporation (NASDAQ:EXAS), which is a company specializing in molecular diagnostics that detect cancer in early stages. Founded in 1995 and headquartered in Wisconsin, Exact Sciences Corporation (NASDAQ:EXAS) is traded as a Russell 1000 Component.
At the end of the second quarter of 2021, 35 hedge funds in Insider Monkey’s database held stakes worth over $2.37 billion in Exact Sciences Corporation (NASDAQ:EXAS), indicating the stock’s popularity with smart money. This is compared to 41 hedge funds in the previous quarter, with stakes amounting to $2.4 billion.
The company reported earnings per share of -$0.76 on July 28, missing analysts’ consensus estimates of -$0.72 by $0.04. The actual revenue for Exact Sciences Corporation (NASDAQ:EXAS) was $434.82 million, beating estimates by $14.37 million.
On September 16, Exact Sciences Corporation (NASDAQ:EXAS) announced that it would expand its sales force by hiring 400 employees. The additional expense will be covered by the reduced promotion fee paid to Pfizer Inc. (NYSE:PFE) after the terms of their sales agreement were renegotiated. Keeping in mind the improved future sales after this strategic maneuver, Canaccord analyst Kyle Mikson reiterated a Buy rating on Exact Sciences Corporation (NASDAQ:EXAS), raising the price target to $160 on July 29.
Catherine Wood’s ARK Investment Management is the largest stakeholder in Exact Sciences Corporation (NASDAQ:EXAS), with 10.7 million shares valued at $1.33 billion.
Like Illumina, Inc. (NASDAQ:ILMN), CRISPR Therapeutics AG (NASDAQ:CRSP), Intellia Therapeutics, Inc. (NASDAQ:NTLA), and Natera, Inc. (NASDAQ:NTRA), Exact Sciences Corporation (NASDAQ:EXAS) is one of the best genomic stocks to buy now.
RiverPark Funds mentioned Exact Sciences Corporation (NASDAQ:EXAS) in their Q2 2021 investor letter, and highlighted the company’s excellent efforts to increase its market opportunity by $40 billion. Here is what they said:
“Despite reporting better-than-expected first quarter revenue and EBITDA, EXAS shares were a top detractor on concerns about increasing competition, as Guardant Health presented positive data for a competing colorectal cancer (CRC) blood test. Positively for EXAS, the recommended age for CRC screening was expanded to include the 45-to-49-age population, adding roughly 20 million potential patients.
In the last year, Exact has pivoted from its single cancer screening tests (Cologuard for colon cancer and Oncotype for breast cancer) to multi-cancer screening through its Thrive acquisition, and to minimal residual disease and recurrence monitoring through its recently announced Ashion and Tardis acquisitions. Through this pivot, Exact has tripled its market opportunity from $20 billion to $60 billion.”
7. Agilent Technologies, Inc. (NYSE:A)
Number of Hedge Fund Holders: 39
Agilent Technologies, Inc. (NYSE:A) is a California-based company, founded in 1999 as a spin-off from Hewlett Packard Enterprise Company (NYSE:HPE). Agilent Technologies, Inc. (NYSE:A) concentrates its efforts in the food, pharmaceutical, chemicals, energy, and forensics sectors. The company provides a full range of technology platforms and lab management services to the clinical and diagnostics markets, which aid in genomics and cloning, among other clinical trials.
39 hedge funds in Insider Monkey’s database held stakes amounting to $3.89 billion in Agilent Technologies, Inc. (NYSE:A) at the end of the second quarter of 2021. This is compared to 42 hedge funds in the previous quarter, with stakes worth $3.46 billion.
The company reported earnings per share of $1.1 on August 17, beating analysts’ estimates of $0.99 by $0.11. The actual revenue for Agilent Technologies, Inc. (NYSE:A) was $1.59 billion, surpassing estimates by $44.17 million.
On September 17, Cowen analyst Doug Schenkel kept an Outperform rating on the shares of Agilent Technologies, Inc. (NYSE:A), raising the price target to $200 from $165. He was confident that the company would meet or perform better than the estimated targets, and the top to bottom growth for both short and long-term was confirmed by the company’s current fundamentals.
Agilent Technologies, Inc. (NYSE:A) announced a quarterly dividend on 19.4 cents per share of common stock which would be payable on October 27. The amount and time of dividends paid would be subject to approval from the board of directors.
Bill Ackman’s Pershing Square is the largest stakeholder in Agilent Technologies, Inc. (NYSE:A), with 11.6 million shares worth $1.72 billion.
Like Illumina, Inc. (NASDAQ:ILMN), CRISPR Therapeutics AG (NASDAQ:CRSP), Intellia Therapeutics, Inc. (NASDAQ:NTLA), and Natera, Inc. (NASDAQ:NTRA), Agilent Technologies, Inc. (NYSE:A) is one of the notable genomics stocks in the market.
Pershing Square Holdings, in their Q2 2021 investor letter, expressed their desire to hold the Agilent Technologies, Inc. (NYSE:A) stock, had they not needed the capital. Here is their entire statement regarding the company:
“Our large commitment to UMG required that we raise cash from the sale of one of our other investments. In light of the high quality of companies in our portfolio, this was a difficult decision to make. Ultimately, we chose to sell Agilent, as its current share price approached our conservative estimate of intrinsic value. If we did not need the capital, we would not have sold the stock.
Agilent has been a highly successful investment since our original purchase nearly two years ago, compounded by our additional investment in the company in the Covid market decline last year. Agilent’s stock price has increased 2.2 times since our initial purchase as a result of the company’s acceleration in revenue growth and profi tability.10 Agilent has been a critical supplier of technology and services to labs around the world fighting the Covid pandemic. The company’s management team led by Mike McMullen deserves enormous credit for the company’s success and for its important contribution to science and the fight against Covid for which we all should be extremely grateful.”
6. Bio-Rad Laboratories, Inc. (NYSE:BIO)
Number of Hedge Fund Holders: 41
The sixth stock on our list of the best genomic stocks to buy now is Bio-Rad Laboratories, Inc. (NYSE:BIO), which manufactures technological products for life science research and clinical diagnostics markets. The company utilizes cutting-edge technology to offer clinical information in the blood transfusion, diabetes monitoring, autoimmune, and contagious diseases testing markets to support diagnosis and treatment.
At the end of the second quarter of 2021, 41 hedge funds from Insider Monkey’s database held stakes amounting to $1.29 billion in Bio-Rad Laboratories, Inc. (NYSE:BIO).
On July 29, the company reported earnings per share of $3.54 for the second quarter of 2021, beating analysts’ estimates by $0.84. The actual revenue for Bio-Rad Laboratories, Inc. (NYSE:BIO) was $715.93 million, beating analysts’ estimates by $76.92 million.
On July 20, Wells Fargo maintained an Overweight rating on Bio-Rad Laboratories, Inc. (NYSE:BIO), raising the price target to $930.
Bio-Rad Laboratories, Inc. (NYSE:BIO) partnered with Seoul-based Seegene on June 30 for the clinical development and commercialization of molecular diagnostic products for infectious diseases. The diagnostic tests by Seegene would be available in the US markets upon approval from the FDA.
Paul Marshall and Ian Wace’s Marshall Wace LLP is the biggest shareholder in Bio-Rad Laboratories, Inc. (NYSE:BIO), with 435,099 shares amounting to $280.3 million.
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Disclosure: None. 11 Best Genomic Stocks to Buy Now is originally published on Insider Monkey.
