Below you can find the list of 5 best genomic stocks to buy now according to hedge funds. For a detailed discussion as well as a more comprehensive list please see 12 Best Genomic Stocks To Buy Now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the best genomic stocks to buy:
5. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
No of HFs: 35
Total Value of HF Holdings: $902 Million
Alnylam Pharmaceuticals, Inc. is ranked as the fifth-best genomic stock to buy now. The company is a biopharmaceutical company that focuses on the production and development of RNA interference therapeutics for genetically defined diseases.
Recently, the company announced the appointment of Tolga Tanguler formed Senior Vice President of Alexion as their Chief Commercial Officer where he will be leading the global marketing, sales, market access, commercial operations, and strategy for the company. John Maraganore, Ph.D., Chief Executive Officer of Alnylam mentioned,
“After an in-depth and comprehensive search, we have selected Tolga Tanguler, a dynamic and highly skilled commercial leader to join Alnylam. With over 20 years of global pharmaceutical and biotech experience, most recently at Pfizer and Alexion, Tolga’s considerable success commercializing multiple rare, specialty and common disease products positions him as an excellent choice for this key role. With Tolga, Kasha, Salil and Aggie joining Alnylam, we have now rounded out our world-class leadership team across our commercial, medical and compliance expertise areas. Together, these outstanding leaders stand poised to support the ongoing global launches of our three marketed products and promising pipeline of innovative medicines addressing a range of patient needs, while we continue on our path towards profitability.”
4. Agilent Technologies, Inc. (NYSE:A)
No of HFs: 39
Total Value of HF Holdings: $3.2 Billion
Agilent Technologies Inc. is a producer and developer of core bio-analytical and electronic measurement solutions to the communications, electronics and life sciences, and chemical analysis industries. During the third quarter of 2020, the company reported revenue of $1.26 million.
In an article, we mentioned Pershing Square Capital Management’s comments on A,
Agilent’s fiscal third quarter results were demonstrative of the company’s high-quality, resilient business model and significant margin expansion opportunity. In what the company expects to be its most challenging quarter of the year, organic revenue declined only 3%, supported by stable performance in its CrossLab service and consumables segment, which grew 1%. While the pace of recovery throughout the quarter varied by region depending on when each region faced the brunt of the pandemic, the company exited July with positive growth across all of its regions. Notably, even with a modest revenue decline, the company was able to expand operating margins by 90 basis points year-over-year by effectively managing its cost structure. Agilent’s stock has increased 16% year-to-date.
Since the onset of the pandemic, Agilent has outperformed its comparable peer group with meaningfully lower revenue declines than peers. Despite the ongoing disruption from the pandemic, the company remains highly focused on product innovation and sales efforts to drive market share gains. For example, in its service business, Agilent introduced new workflow solutions to capitalize on the trend of labs outsourcing multiple services to a single vendor. The company has recently won several large, lab-wide, enterprise service contracts. Likewise, in its instrument portfolio, Agilent launched two new mass spectrometry product lines aimed at increasing testing throughput and reducing downtime. We expect these initiatives to drive long-term sales growth as they expand the installed base of Agilent instruments, and increase the penetration of its service and consumables off erings.”
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3. Natera, Inc. (NASDAQ:NTRA)
No of HFs: 43
Total Value of HF Holdings: $932 Million
Natera, Inc. is a genetic testing company that focuses on providing DNA testing across multiple areas. The company offers Panorama, a non-invasive prenatal test.
The top hedge fund holder of this stock is Samuel Isaly’s OrbiMed Advisors, which had over $152 million invested in the stock at the end of September.
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2. Illumina, Inc. (NASDAQ:ILMN)
No of HFs: 44
Total Value of HF Holdings: $1.3 Billion
Illumina, Inc. is a developer and producer of integrated systems that focus on the analysis of genetic variation and biological function. During the third quarter of 2020, the company announced a revenue of $794 million, an increase of 26% compared to the second quarter of 2020. We wrote an article on the 12 best large biotech stocks to buy now and ILMN was one of them.
In a separate article, Baron Asset Fund’s mentioned comments on ILMN
Illumina, Inc. is the leading manufacturer of DNA sequencing systems for genetic analysis. Shares fell as lower utilization of the company’s systems during COVID-19 led to disappointing second quarter financial results. Illumina also announced the acquisition of Grail, which is developing a blood test for early stage cancer detection. Investors responded negatively to the acquisition because of substantial near-term earnings dilution and concerns about competition with Illumina’s customers. Although we appreciate these concerns, we believe the Grail investment offers the potential for significant long-term value creation in the rapidly growing market for early cancer screening.
In a separate article, RiverPark Advisors, LCC mentioned that ILMN is the clear innovation leader in sequencing and array-based solutions for genetic analysis.
Illumina: ILMN shares were our top detractor for the quarter, as the market viewed negatively its $8 billion purchase of liquid biopsy leader GRAIL. The acquisition marks a shift in strategy for Illumina from its highly profitable selling of tools to the liquid biopsy market (among other markets) to actively participating in the development of tests themselves. This market (earlystage cancer screening via blood samples), however, is a massive long-term opportunity that can dramatically change the face of healthcare. GRAIL is a leader and should have a commercial product as early as next year.
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 $3.4 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 entrance into the potentially larger liquid biopsy market, we believe that the company has a significantly larger growth opportunity ahead.
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1. Biomarin Pharmaceutical, Inc. (NASDAQ:BMRN)
No of HFs: 44
Total Value of HF Holdings: $1.5 Billion
The top genomic stock to buy now is Biomarin Pharmaceutical, Inc. The company is headquartered in San Rafael, California. They are known to be one of the world’s leaders in developing and marketing innovative biopharmaceuticals for rare disease driven genetic causes.
The top hedge fund holder of this stock is Julian Baker and Felix Baker’s Baker Bros. Advisors, which had over $577 million invested in the stock at the end of September.
Please also see 10 Best Biotech Stocks To Invest In and 10 Best Data Center Stocks to Buy Now.
