12 Cheap Biotech Stocks To Buy

Published on January 25, 2023 at 10:37 am by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at 12 cheap biotech stocks to buy. To skip our detailed analysis of the biotech sector, you can go directly to see 5 Cheap Biotech Stocks To Buy.

The biotechnology sector has been on the rise over the past three decades. Several forecasts expect the sector to make significant headway through developing cures for various diseases.

Some of the more famous names in the biotech space include companies like Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), BioNTech SE (NASDAQ:BNTX), and AbbVie Inc. (NYSE:ABBV). These companies have steadily been making a name for themselves by producing medical cures and vaccines. Consequently, biotech stocks began soaring last year. According to a Wall Street Journal article published in August 2022, the SPDR S&P Biotech ETF, an equal-weighted fund of biotech stocks, was up by 41.4% in August from its low on May 11. Another fund, iShares Biotechnology ETF, also rose by 21.8% from its low on June 16. A comparison with the S&P 500’s performance between June and August shows that the broader benchmark index was only up by 16.9% over the same period. This representation of the biotech sector’s outperformance in the market resulted in renewed optimism among investors eyeing the sector, leading to stronger support for biotech stocks on Wall Street.

According to a Global Trends report published by the National Intelligence Council’s Strategic Futures Group in April 2021, the global bio-economy accounted for about $5 trillion, or nearly 6% of global GDP at the time. The global bio-economy refers to all activity enabled by research and innovation in the life sciences and biotech. The report also mentioned that the global bio-economy could exceed $20 trillion by 2023, based on 10%-15% annual revenue growth trends in the sector. This growth in the biotech sector is expected to arise from a more multidisciplinary and data-intensive approach to the life sciences and biotech over the next two decades. By 2023, we are already beginning to observe an increased usage of biotech by medical professionals and medical diagnostics. Personal Internet of Things (IoT) devices are also being used to collect higher volumes of health data to be used in predicting new diseases and treatment outcomes in the biotech space. As such, we can expect the sector to continue soaring in the years to come.

louis-reed-pwcKF7L4-no-unsplash

Let’s now take a look at the 12 cheap biotech stocks to buy.

Our Methodology

We scanned Insider Monkey’s database of 920 elite hedge funds and picked the top 12 biotech stocks with P/E ratios less than 20. That means the stocks mentioned in the article are the most popular cheap biotech stocks among elite hedge funds. For reference, P/E ratio for the broader biotech industry is 113, according to NYU Stern’s database.

The stocks are ranked based on their P/E ratios, from the highest to the lowest.

Note: All share prices mentioned in the article are as of January 22, 2023.

Cheap Biotech Stocks To Buy

12. Incyte Corporation (NASDAQ:INCY)

Number of Hedge Fund Holders: 39

P/E ratio as of January 22: 20.70

Incyte Corporation (NASDAQ:INCY) is a biopharmaceutical company. It is based in Wilmington, Delaware.

Incyte Corporation (NASDAQ:INCY) is considered to be undervalued at present, considering it showed a 20% year-over-year product revenue growth in the third quarter of 2022. Analysts believe the stock is trading at a discount, with its P/E ratio being just over 20 and with revenue growing by $38 million year-over-year by November 2022.

Incyte Corporation (NASDAQ:INCY) had 39 hedge funds long its stock in the third quarter of 2022, with a total stake value of $3.4 billion.

11. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)

Number of Hedge Fund Holders: 27

P/E ratio as of January 22: 19.26

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a commercial-stage biotech company. It is based in Plymouth Meeting, Pennsylvania.

David Amsellem at Piper Sandler holds an Overweight rating on Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) shares as on January 4. Piper Sandler set a price target of $70. This is an increase from their previous target of $62, meaning analysts currently see huge upside potential in the stock.

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) was found among the 13F holdings of 27 hedge funds in the third quarter. Their total stake value was $338 million.

10. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 80

P/E ratio as of January 22: 19.09

AbbVie Inc. (NYSE:ABBV) is a biotech company based in North Chicago, Illinois. The company’s products include Humira, a therapy for autoimmune and intestinal Behçet’s diseases.

A Buy rating was reiterated on AbbVie Inc. (NYSE:ABBV) shares on January 5 by Truist analyst Robyn Karnauskas.

In the broader healthcare sector, AbbVie Inc. (NYSE:ABBV) is trading at a discounted valuation compared to its competitors, such as Johnson & Johnson.

In total, 80 hedge funds were long AbbVie Inc. (NYSE:ABBV) in the third quarter, with a total stake value of $1.9 billion.

9. United Therapeutics Corporation (NASDAQ:UTHR)

Number of Hedge Fund Holders: 47

P/E ratio as of January 22: 17.71

United Therapeutics Corporation (NASDAQ:UTHR) develops and commercializes products to treat chronic diseases in the US and worldwide. It is based in Silver Spring, Maryland.

On December 6, United Therapeutics Corporation (NASDAQ:UTHR) was initiated with a Buy rating at UBS by analyst Ashwani Verma.

United Therapeutics Corporation (NASDAQ:UTHR) is currently trading at an attractively low valuation with a P/E ratio of 17.71 and a PEG ratio of 1.11. The company’s PEG ratio is based on the consensus expected earnings growth of 13% annually over the next three to five years.

Our hedge fund data shows 47 hedge funds long United Therapeutics Corporation (NASDAQ:UTHR) in the third quarter. Their total stake value was $2.5 billion.

8. Exelixis, Inc. (NASDAQ:EXEL)

Number of Hedge Fund Holders: 35

P/E ratio as of January 22: 17.43

Exelixis, Inc. (NASDAQ:EXEL) is a biotech company based in California, US. The company is focused on oncology and works to develop medicines for cancers.

An Outperform rating was reiterated on Exelixis, Inc. (NASDAQ:EXEL) shares on January 21 by analyst Andy Hsieh at William Blair.

The average analyst price target on Exelixis, Inc. (NASDAQ:EXEL) stands at $25, representing an upside potential of 50%. The company has a market capitalization of $5.3 billion, making it an attractive buy relative to its peers.

There were 35 funds long Exelixis, Inc. (NASDAQ:EXEL) in the third quarter, with a total stake value of $671 million.

7. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Number of Hedge Fund Holders: 43

P/E ratio as of January 22: 15.09

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotech company based in the US. The company invents and commercializes medicines to treat a range of diseases across the globe.

JPMorgan’s Chris Schott upgraded Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) shares from Neutral to Overweight on January 21.

Between April and August of 2022, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) saw a share price decline of 20%. The stock has since recovered to its current share price of $722, and analysts on Wall Street expect it to continue upwards as 2023 progresses. JPMorgan, for instance, currently holds a price target of $850 on the stock. Coupled with the company’s P/E ratio of 15.09, this makes the stock seem to be trading at a discount to its true potential.

Citadel Investment Group was the largest stakeholder in Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in the third quarter, holding 603,600 shares worth $415.8 million. In total, 43 hedge funds were long the stock, with a total stake value of $1.3 billion.

Bronte Capital, an investment management company, mentioned Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its third-quarter 2022 investor letter. Here’s what the firm said:

“There have been some bright spots in our long book. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a major position and a stock we wrote up in our June 2021 letter, has been one of the best performing stocks in the S&P 500 this year. Alas it has not been enough to offset some of our weaker stocks, let alone our overweight exposure to the UK (and Europe) which have suffered from both stock and currency weakness. We do not think we are bad at picking stocks on the long side and hope – reasonably we think – for better relative results in the future. Prior to COVID, our longs were markedly better than the index. Unfortunately, if you look at our long book this quarter and since the onset of the COVID pandemic, there is scant evidence that we have added any value by picking stocks to go long.”

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), like BioNTech SE (NASDAQ:BNTX), and AbbVie Inc. (NYSE:ABBV), is a highly popular biotech stock today, as evidenced by the number of hedge funds piling into it.

6. Biogen Inc. (NASDAQ:BIIB)

Number of Hedge Fund Holders: 70

P/E ratio as of January 22: 14.32

Biogen Inc. (NASDAQ:BIIB) develops and delivers therapies for neurological and neurodegenerative diseases. The company is based in Cambridge, Massachusetts.

Brian Abrahams at RBC Capital holds an Outperform rating on Biogen Inc. (NASDAQ:BIIB) shares as of January 10.

Compared to the company’s current share price of $285.77, RBC Capital analysts hold a price target of $362 on the stock, representing how undervalued the market views Biogen Inc. (NASDAQ:BIIB) to be.

There were 70 hedge funds long Biogen Inc. (NASDAQ:BIIB) in the third quarter. Their total stake value was $3.7 billion.

ClearBridge Investments, an investment management company, mentioned Biogen Inc. (NASDAQ:BIIB) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Biogen Inc. (NASDAQ:BIIB) was the leading contributor among several biopharma names, boosted by positive, pivotal clinical data for its next-generation Alzheimer’s treatment Lecanemab. In a pivotal trial, the drug proved safe and efficacious in slowing progression of Alzheimer’s disease.”

Biogen Inc. (NASDAQ:BIIB), like Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), BioNTech SE (NASDAQ:BNTX), and AbbVie Inc. (NYSE:ABBV), is a biotech stock with immense growth potential.

Click to continue reading and see 5 Cheap Biotech Stocks To Buy.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up