3 Top-Rated Biotech Stocks Wall Street Analysts Are Loving Now: January 2024
Stocks in the biotech sector are always going to have massive potential. Health is arguably the most important aspect of life. In turn, the firms that can produce therapeutics that address human disease will always command high prices. That’s why we curated this list of the top-rated biotech stocks.
Novel treatments with greater efficacy create incredible returns for firms and investors. Of course, Wall Street and the analysts who work at its firms pay close attention to this sector at all times. Those firms are ever-vigilant in their pursuit of the next big biotech stock.
Thus, their well researched ratings hold significant influence over investment decisions overall. The three biotech stocks discussed below all benefit from strong ratings from Wall Street analysts.
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Amylyx Pharmaceuticals (AMLX)
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Amylyx Pharmaceuticals (NASDAQ:AMLX) is a leading bio pharmaceutical firm engaged in the development of therapeutics for neurodegenerative diseases. These include diseases like amyotrophic lateral sclerosis (ALS). The company’s stock is highly regarded on Wall Street. Of the eight analysts with coverage, seven of them give it a ‘Buy’ rating with the one remaining analyst assigning it an ‘Overweight’ rating.
Amylyx Pharmaceuticals’ shares also possess significant upside. They currently trade for less than $16 and are expected to rise above $40.
The company’s lead drug, Relyvrio, Received FDA approval for the treatment of ALS in 2022. That drug continues to receive strong positive reception with sales which reached $102.7 million in the third quarter. However, its continued success is not guaranteed. In order for the company to continue to improve, the company will need to provide positive Phase 3 trial results. We expect to see these results in March.
Positive results could lead to approval of Relyvrio in the European market. FDA approval of the drug is secured. However, in order for substantial growth to continue the company will require further regulatory approval in new geographies.
Bio-Techne (TECH)
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Bio-Techne (NASDAQ:TECH) doesn’t manufacture and develop therapeutics as does Amylyx Pharmaceuticals and many other biotech firms. Instead, the company is a biotech firm that engages in the production of products and services for the diagnostic market including reagents, for example. Its stock is highly rated by Wall Street and carries a ‘Buy’ rating overall.
Part of the reason Bio-Techne He is so well regarded on Wall Street has to do it with projections related to growth in the Diagnostics Market in the coming years. It is expected that compound annual growth rates will average 6.7% between 2024 and 2032. That isn’t a particularly high rate but it is steady and sustainable.
Meanwhile, the company continues to see strong earnings growth. Over the last five years, earnings have increased by an average of more than 16% annually. Wall Street expects earnings to increase by more than 11% annually throughout the next five years which is a rate that exceeds overall industry growth and is therefore attractive.
Exelixis (EXEL)
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Exelixis (NASDAQ:EXEL) Is the last biotech stock on this list of firms That Wall Street analysts are loving in 2024. The company benefits from an ‘Overweight’ rating on the street and recently received positive news that should only make it that much more attractive.
Well, that is for investors who value proximity to revenue. What I mean is that Exelixis recently announced a corporate restructuring that will prioritize it’s pipeline of clinical and near-clinical programs
Part of that pivot includes a recent termination of a developmental antibodies program with a Swedish Firm Bioinvent International.
On Jan. 8m the company announced that it was laying off 175 employees as part of a broader restructuring. The layoff amounted to 13% of its overall workforce. The reduction in costs will allow the firm to focus on label expansions for its cancer drug Cabometyx. It will also free up money for Another drug in late clinical stages indicated for the treatment of renal cell carcinoma and colorectal cancer.
Wall Street analysts are already broadly on board with the company and the recent restructuring has clear potential to improve overall company performance.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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