In this article, we will take a look at the 5 best genomic stocks to buy now. For a detailed analysis of the genomics industry and a more comprehensive list of stocks, go directly to the 11 Best Genomic Stocks to Buy Now.
5. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Number of Hedge Fund Holders: 41
Intellia Therapeutics, Inc. (NASDAQ:NTLA) is the fifth stock on our list of the 10 best genomic stocks to buy now. The biotech company was founded in 2014 to create biopharmaceuticals using the CRISPR gene-editing system. In 2015, Intellia Therapeutics, Inc. (NASDAQ:NTLA) partnered with Novartis AG (NYSE:NVS) to utilize CRISPR to create treatments for beta thalassemia and sickle cell disease.
41 out of 873 hedge funds tracked by Insider Monkey held stakes amounting to $2.28 billion in Intellia Therapeutics, Inc. (NASDAQ:NTLA) at the end of the second quarter of 2021. This is compared to 29 hedge funds in the previous quarter with stakes valued at $1.13 billion.
On October 5, Guggenheim analyst Debjit Chattopadhyay initiated coverage of Intellia Therapeutics, Inc. (NASDAQ:NTLA) with a Buy rating and raised the price target to $170.
The clinical trial application by Intellia Therapeutics, Inc. (NASDAQ:NTLA) was approved by New Zealand Medicines and Medical Devices Safety Authority to initiate a study for treating adults with hereditary angioedema. This clinical trial would determine the correct dosage of NTLA-2002 for future studies.
Catherine Wood’s ARK Investment Management is the leading stakeholder in Intellia Therapeutics, Inc. (NASDAQ:NTLA), with 7.68 million shares amounting to $1.24 billion.
In their Q2 2021 investor letter, Carillon Tower Advisers discussed their stance on Intellia Therapeutics, Inc. (NASDAQ:NTLA). Here is what they said:
“Intellia Therapeutics is a clinical-stage genome editing company focused on the development of proprietary, potentially curative therapeutics. The company’s stock soared after announcing positive interim data from an ongoing phase 1 clinical study of its in vivo gene editing candidate, which is being developed as a single-dose treatment for hereditary transthyretin (ATTR) amyloidosis. This specific form of therapy would be the first of its kind resulting in the precision editing of a gene in a target tissue in the human body.”
4. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Number of Hedge Fund Holders: 44
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is the fourth stock on our list of the 10 best genomic stocks to buy now. This is a California-based biotechnology company whose key research is focused on enzyme replacement therapies. As of 2016, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has marketed 6 orphan drugs, and is in the process of developing new therapies and medications. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is traded as a Russell 1000 Component.
At the end of the second quarter of 2021, 44 hedge funds in Insider Monkey’s database held stakes amounting to $1.32 billion in BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), up from 43 in the previous quarter with stakes worth over $1.26 billion.
Jefferies analyst Akash Tewari assumed coverage of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) with a Buy rating, raising the price target to $100 on October 6. Tewari justified his rating to investors by stating the company would encash a $2.3 billion opportunity if its two key products, Roctavian and Voxzogo, are approved. He was optimistic about the FDA approval and subsequent profits.
Julian and Felix Baker’s Baker Bros. Advisors holds the largest stake in BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), with 7.58 million shares amounting to $633.2 million.
ClearBridge Investments mentioned the stock in their letter. Here is what they said in their Q1 2021 investor letter:
“The Strategy closed out of five positions (including BioMarin). We sold BioMarin Pharmaceutical after a number of its clinical catalysts had played out.”
3. Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Holders: 51
Illumina, Inc. (NASDAQ:ILMN) is the third stock on our list of the 10 best genomic stocks to purchase now. The American biotechnology company develops and sells integrated systems for studying genetic variation and biological function. The California-based Illumina, Inc. (NASDAQ:ILMN) single handedly deployed a technology that reduced the cost of sequencing a human genome to $1000 in 2014 from $1 million in 2007.
At the end of the second quarter of 2021, 51 hedge funds in Insider Monkey’s database held stakes amounting to $1.97 billion in Illumina, Inc. (NASDAQ:ILMN).
On September 20, Illumina, Inc. (NASDAQ:ILMN) announced that it would open entities in Colombia and Mexico, which would not only focus on key healthcare systems and hospitals, but also support local and nearby Illumina, Inc. (NASDAQ:ILMN) partners across Latin America, including countries in the Caribbean, Central American, and South America.
Out of the hedge funds tracked by Insider Monkey, GuardCap Asset Management is the largest stakeholder in Illumina, Inc. (NASDAQ:ILMN), with 1.22 million shares amounting to $580.7 million.
In their Q2 2021 investor letter, RiverPark Funds declared Illumina, Inc. (NASDAQ:ILMN) as the market leader in the genomics industry. Here is what they said:
“ILMN shares were our final top contributor for the quarter, rebounding from a decline in March due to the FTC filing a complaint to block the company’s acquisition of Grail. In April, Illumina reported better-than-expected results and a strong outlook. ILMN revenue grew 27%, with Sequencing revenue up 29%, instrument revenue up 123% and consumables up 26%. Adjusted operating margin grew sequentially to 32.1% from 20.9% in 4Q20, significantly exceeding estimates. Management also increased its full-year 2021 revenue growth guidance from its previous 17%-20% growth (we previously wrote we thought it to be conservative) to 25%-28%.
We continue to view the company’s core genomics industry as offering one of the larger total addressable markets that we cover, and ILMN is the clear innovation leader in sequencing and array-based solutions for genetic analysis. With less than 0.02% of humans having been sequenced and 99% of the variants discovered in the genome having not yet been deciphered, Illumina, at only $3.5 billion of TTM revenue, is still in its infancy in what is potentially a greater than $50 billion genetics analysis tools market opportunity. With Illumina’s recent entrance into the potentially even larger liquid biopsy market (early-stage cancer screening via blood samples) through its acquisition of Grail, the company has two large growth opportunities ahead.”
2. Natera, Inc. (NASDAQ:NTRA)
Number of Hedge Fund Holders: 52
Natera, Inc. (NASDAQ:NTRA) is the second stock on our list of the 10 best genomic stocks to buy now. Natera, Inc. (NASDAQ:NTRA) is a Texas-based genetic testing company that is dedicated to non-invasive cell-free DNA testing that primarily focuses on women’s health, cancer, and organ health. Natera, Inc. (NASDAQ:NTRA) has accredited and certified laboratories in California and Texas. Founded in 2004, the company is now traded as a Russell 2000 Component.
Out of the 873 hedge funds tracked by Insider Monkey, 52 held stakes in Natera, Inc. (NASDAQ:NTRA) at the end of the second quarter of 2021, worth $1.89 billion. This is compared to 41 hedge funds holding stakes amounting to $1.22 billion in the previous quarter.
On August 9, Piper Sandler analyst Steven Meh kept an Overweight rating on Natera, Inc. (NASDAQ:NTRA), raising the price target to $160 from $155. Meh believed that the company was well-positioned for growth in the second half of 2021 and beyond, while stating that the ADLT award that was granted to Natera, Inc. (NASDAQ:NTRA) ensures Medicare reimbursement for the years to come.
Out of the hedge funds tracked by Insider Monkey, Samuel Isaly’s OrbiMed Advisors is the largest stakeholder in Natera, Inc. (NASDAQ:NTRA), with 2.05 million shares amounting to $233.6 million.
The investment management firm, Alger, included Natera, Inc. (NASDAQ:NTRA) in their ‘Alger Small Cap Focus Fund’, and praised the company’s performance and its position as the market leader in the genetic diagnostics industry. Here is what they said about Natera, Inc. (NASDAQ:NTRA) in their Q4 2020 investor letter:
“Natera is a leading provider of genetic diagnostics tests used in the large, underpenetrated reproductive medicine, oncology and organ transplant markets. Natera’s disruptive technology is augmented with software algorithms, bioinformatics and artificial intelligence to improve the detection of diseases and deliver clinically actionable information, thereby addressing significant unmet medical needs and ultimately saving lives. Natera is a highly innovative company that has consistently invested 20% of its revenue in research and development. Natera stock outperformed in the fourth quarter after the company reported stronger-than-expected financial results for the three-month period ended September 30, driven by strong test volume. After the two leading reproductive medicine societies in the U.S. issued a positive joint opinion that recommends non-invasive prenatal testing (NIPT) for all pregnancies in August. UnitedHealthcare and Aetna, who were the two large national payers that did not provide reimbursement for the service, finally adopted formal coverage of NIPT. This development increases Natera’s potential for generating both strong test volume growth and a higher average price per NIPT. In October, Natera introduced testing for colorectal cancer, which is the first monitoring test launched in the U.S. to detect minimal residual disease (MRD) or cancer recurrence in solid tumors. Natera is also working to obtain final Medicare coverage and reimbursement for at least one additional application of its Signatera test involving the results of various immunotherapy drugs for cancer treatment.”
1. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 87
Thermo Fisher Scientific Inc. (NYSE:TMO) ranks first on the list of the 10 best genomic stocks to buy now. Thermo Fisher Scientific Inc. (NYSE:TMO) is a Massachusetts-based provider of scientific instruments, reagents and consumables, and software services.
The company offers a variety of genomics solutions using cutting edge technology, such as next-generation sequencing, real-time PCR, Sanger sequencing, and microarrays. Thermo Fisher Scientific Inc. (NYSE:TMO)’s genomics solutions are focused on oncology, infectious diseases, reproductive health, and inherited diseases. The company was formed after Thermo Electron and Fisher Scientific were merged in 2006. Since then, the scientific giant has acquired many companies in the field including Life Technologies Corporation in 2013, Alfa Aesar in 2015, Affymetrix in 2016, FEI Company in 2017, and BD in 2018.
Thermo Fisher Scientific Inc. (NYSE:TMO) was granted emergency use authorization by the FDA to conduct tests that would alleviate the COVID-19 pandemic. The company is traded as a S&P 100 and S&P 500 Component.
At the end of the second quarter of 2021, 87 hedge funds tracked by Insider Monkey held stakes amounting to $7.39 billion in Thermo Fisher Scientific Inc. (NYSE:TMO), up from 79 in the previous quarter with stakes worth $6.25 billion.
The company reported earnings per share of $5.6 for the second quarter of 2021 on July 28, beating analysts’ consensus estimates by $0.13. The actual revenue for Thermo Fisher Scientific Inc. (NYSE:TMO) was $9.27 billion, beating estimates by $546.4 million.
Thermo Fisher Scientific Inc. (NYSE:TMO) announced on October 1 that it would open a new biologics production facility in Lengau, Switzerland, as part of its deal with CSL Limited (OTC:CSLLY). The facility will be completed in 2022, and will employ a workforce of 200. Initially, the facility will solely support the production of CSL Limited (OTC:CSLLY)’s product for patients with hemophilia B, but it would later cater to other customers as well.
On September 23, Goldman Sachs analyst Matthew Sykes upgraded Thermo Fisher Scientific Inc. (NYSE:TMO) stock to Conviction Buy from Buy, raising the price target to $690 from $600. Skyes believes that the company has excellent potential for growth, and they are highly competitive in the industry.
Alexander Becker’s Codex Capital is the largest stakeholder in Thermo Fisher Scientific Inc. (NYSE:TMO), with 15,600 shares worth $7.87 billion.
In their Q2 2021 investor letter, ClearBridge Investments mentioned Thermo Fisher Scientific Inc. (NYSE:TMO), and how the stock turned their exposure to the healthcare sector from underweight to overweight. Here is what they said:
“Two additional names in the health care sector in the quarter, partially funded with a sale, made strong contributions and helped push our relative exposure to the sector from underweight to overweight. We added Thermo Fisher Scientific to increase our exposure to health care tools, which has been an attractive and core segment within health care. Thermo Fisher’s instruments are used to monitor and protect air, water, and food quality, and the company has strong long-term fundamentals, a top-tier management team and a diversified business.”
You can also take a look at Carl Icahn’s Stock Portfolio: Top 12 Picks and 10 Tech IPOs that Flopped.
