5 Cheap Biotech Stocks To Buy

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

5. CRISPR Therapeutics AG (NASDAQ:CRSP)

Number of Hedge Fund Holders: 29

P/E ratio as of January 22 (TTM): 13.19

CRISPR Therapeutics AG (NASDAQ:CRSP) is a gene editing company in the biotech space. It is based in Switzerland.

An Outperform rating was reiterated on CRISPR Therapeutics AG (NASDAQ:CRSP) shares on January 19 by JMP Securities analyst Silvan Tuerkcan.

Since the company’s July 2021 IPO, CRISPR Therapeutics AG (NASDAQ:CRSP) shares have fallen by 44%. At present, the stock is trading at a 30% discount from its recent highs, making now a prime time to buy into the company. Analysts, such as those at JMP Securities, hold price targets as high as $70 on the stock as of this January, compared to its share price of $49.61. The stock’s P/E ratio is also competitively low in the biotech sector.

CRISPR Therapeutics AG (NASDAQ:CRSP) had 29 hedge funds long its stock in the third quarter, with a total stake value of $718 million.

4. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 77

P/E ratio as of January 22: 8.64

Pfizer Inc. (NYSE:PFE) is a biotech company based in New York. It manufactures and distributes biopharmaceutical products across the globe.

Wells Fargo analyst Mohit Bansal holds an Equal Weight rating on Pfizer Inc. (NYSE:PFE) shares as of January 17.

Pfizer Inc. (NYSE:PFE) has sported a healthy dividend for about 12 years now, with a yield of 3.64% as of January 22. The company’s P/E ratio of 8.64 sits well below the average P/E for the biotech sector, which is 14.9. Analysts on Wall Street also see upside potential in the stock, with Wells Fargo currently holding a $50 price target on the stock, while the stock’s share price stands at $45.11.

Pfizer Inc. (NYSE:PFE) was found among the 13F holdings of 77 hedge funds in the third quarter. Their total stake value was $2.4 billion.

3. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 44

P/E ratio as of January 22: 6.86

Moderna, Inc. (NASDAQ:MRNA) is based in Cambridge, Massachusetts. The company discovers and commercialized messenger RNA therapeutics and vaccines.

As of January 11, Deutsche Bank’s Emmanuel Papadakis holds a Buy rating on Moderna, Inc. (NASDAQ:MRNA) shares.

Moderna, Inc. (NASDAQ:MRNA) is currently trading at over 50% below its market highs during the COVID-19 pandemic. Yet, the company is still considered one of the top players in the biotech sector on Wall Street, with analysts at Deutsche Bank holding price targets as high as $225 on the stock, compared to its current share price of $193.98. This, combined with the company’s competitively low P/E ratio of 6.86, make Moderna, Inc. (NASDAQ:MRNA) is a cheap biotech stock pick today.

Our hedge fund data shows 44 funds long Moderna, Inc. (NASDAQ:MRNA) in the third quarter, with a total stake value of $1.9 billion.

Baron Funds, an investment management company, mentioned Moderna, Inc. (NASDAQ:MRNA) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Within biotechnology, underperformance of Moderna, Inc. (NASDAQ:MRNA) and lower exposure to this better performing sub-industry weighed the most on relative performance. Shares of Moderna, a leader in the emerging field of mRNA-based vaccines and therapeutics, declined due to increasing uncertainty around what a booster market could look like as COVID shifts away from pandemic status and becomes an increasingly commercial market rather than government funded.”

2. Innoviva, Inc. (NASDAQ:INVA)

Number of Hedge Fund Holders: 20

P/E ratio as of January 22: 3.93

Innoviva, Inc. (NASDAQ:INVA) is an American biotech company. It develops and commercializes pharmaceuticals in the US and internationally.

Analysts at Goldman Sachs see an 8.7% upside potential in Innoviva, Inc. (NASDAQ:INVA). The stock is also operating at a P/E ratio of 3.93 as of this January, making it seem undervalued in the biotech space, in comparison to its competitors.

There were 20 hedge funds long Innoviva, Inc. (NASDAQ:INVA) in the third quarter, with a total stake value of $201 million.

1. BioNTech SE (NASDAQ:BNTX)

Number of Hedge Fund Holders: 18

P/E ratio as of January 22: 3.25

BioNTech SE (NASDAQ:BNTX) is based in Germany. It develops and commercializes immunotherapies for cancer and other infectious diseases.

On December 15, Tazeen Ahmad at BofA upgraded BioNTech SE (NASDAQ:BNTX) shares from Neutral to Buy.

As of September 30, 2022, BioNTech SE (NASDAQ:BNTX) had about $14.15 billion in cash and equivalents and total trade receivables of $7.71 billion. Wall Street analysts consider the stock to be undervalued, with BofA holding a $239 price target on the stock, compared to its current share price of $142.79. This represents significant upside potential, further demonstrated by the company’s P/E ratio of 3.25, which is far below its peers in the biotech space.

In total, 18 funds were long the stock, with a total share value of $185.9 million.

Artisan Partners, an investment management company, mentioned BioNTech SE (NASDAQ:BNTX) in its third-quarter 2022 investor letter. Here’s what the firm said:

“BioNTech SE (NASDAQ:BNTX) is a leading biotech company focused on developing immunotherapies to treat cancer and other serious diseases. Over the past year, we trimmed our position significantly as we believed the stock’s valuation failed to reflect the windfall nature of COVID-19 vaccine cash flows. With the stock nearly 70% off its highs and, more importantly, at a reasonable discount to our PMV estimate, we view the valuation as opportunistic given its long-term profit cycle potential. BioNTech’s intellectual property in mRNA, and COVID funded manufacturing capacity leave it well-positioned to develop new mRNA vaccines and cancer therapies. In addition, the company has non-mRNA technology (e.g., cell therapy assets) and blue-chip partnerships offering additional optionality. While the company’s R&D pipeline beyond COVID-19 vaccines will take some time to mature, it is well funded by close to $20 billion in COVID-vaccine proceeds. We increased our position within the GardenSM as the stock declined.”

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