3 biotech bargains to buy

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3 Biotech Bargains To Buy

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Post on 12-Apr-2017

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3 Biotech Bargains To Buy

Biotech’s bursting bubble• Between December 2012 and July 2015 Biotech Stocks

Soared.• The NASDAQ Biotechnology Index ETF gained 179%.

• Since July 2015 Biotech Stocks have crumbled.• The NASDAQ Biotechnology Index ETF has fallen by 14.7%• Biotech stocks lost $40 billion in value alone on Monday

September 21.

3 Biotech bargains to buy• #1: Celgene Corporation– Shares have dropped 13.2% since July.– Shares are trading at 18.2 times 2016 EPS.– Revenue grew 21.6% year-over-year in Q2.– Analysts expect EPS to grow 24% next year.– But, that’s not even why I really like this company…

Celgene continued…• The real reason I like Celgene’s stock is

because:• Celgene is guiding for $21 billion in sales in 2020. • And that’s up from sales of $7.67 billion in 2014.• Which is an increase of more than 173%.

3 Biotech bargains to buy• #2 Gilead Sciences

• Shares have dropped 12.7% since July.• Revenue grew 26.2% year-over-year in Q2.• Analysts expect EPS to grow 44% this year.• Gilead Sciences is guiding for >$29 billion in sales in 2015.

• Up from prior guidance for >$26 billion exiting 2014.

• But there’s one more very big reason why I think Gilead is a buy.

Gilead Sciences continued…

• And that’s because

• Gilead Sciences shares are trading at only 8.6 times analysts EPS estimate for next year.

Gilead Sciences continued…And that means that shares can be bought when Gilead’s P/E is near 10 year lows.

3 Biotech bargains to buy• #3 Biogen Inc.

• Shares are down 30.6% since March.• Shares are trading at 16 times 2016 EPS.• Revenue grew 7% year-over-year in Q2.• Analysts expect EPS to grow 12% next year.• Biogen is guiding for >6% sales growth in 2015.• And yet there’s one more reason why this bellwether can be owned.

• But there’s also another reason to consider this bellweather.

Biogen continued…Because Its earnings and its cash stockpile are at record highs.

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