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5 Biotech Stocks to Buy Right Now

Zachary Stutler

Many of the companies in the biotech sector have had a rough past few weeks with many stocks hitting their lowest levels since January. That being said, here are a few stocks that have outperformed their peers and are expected to have continued growth throughout the next couple of years. All the stocks in this list are a Zacks Rank #2 (Buy) or better.

Vertex Pharmaceuticals Inc. VRTX

Zacks Rank #2 (Buy)

Vertex Pharmaceuticals is a Boston based biotech firm that specializes in the development and production of Cystic Fibrosis treatments. Vertex was recently upgraded to a Zacks Rank #2 (Buy) on the back of earnings estimate revisions for the current fiscal year trending in the right direction. On top of 3.4% projected growth this year, the Zacks Consensus Estimate calls for VRTX’s fiscal 2020 earnings to climb 37% above our 2019 estimate. This bottom-line growth is projected to be fueled by estimated revenue growth of 16.7% this year and a further 22% expansion in 2020. Vertex currently earns a Style Score of "B" for Growth.

Gilead Sciences Inc. GILD

Zacks Rank #2 (Buy)

California-based Gilead Sciences is a drug company primarily focused on developing antiviral drugs. Gilead had 11 upwards earnings estimate revisions over the past 60 days, compared to just 1 downward revision for fiscal 2019. This shows analysts are more optimistic about the company’s current year earnings. Gilead also boasts a Zacks Style Score of "A" for Value due to multiple factors including its low P/E of 9.23 compared to its industry’s average of 23.89. The combination of good value and expected earnings growth could make Gilead a great addition to a portfolio.

Repligen Corp. RGEN

Zacks Rank #1 (Strong Buy)

Repligen is a biotech company based out of Massachusetts that develops and produces materials used to manufacture biological drugs. Repligen is the first of two Zacks Rank #1 (Strong Buy) companies on this list. The Zacks Consensus Estimates for Repligen’s earnings growth are 28.8% and 19% for fiscal year 2019 and 2020, respectively. These earnings growth rates are accompanied by expected revenue growth of 30% and 16.9% for fiscal year 2019 and 2020, respectively. This expected growth helped earn Repligen a Zacks Style Score of "A" for Growth.

Illumina Inc. ILMN

Zacks Rank #2 (Buy)

Illumina is a San Diego based biotech company that has created products to help genome sequencing and reduce its cost. Illumina, like many of the companies on this list is expected to have good growth over the next couple of fiscal years. Over the past 60 days, Illumina had 11 upwards earnings revisions for fiscal year 2019 and 8 upwards earnings revisions for fiscal year 2020 while also having 0 downwards revisions for those same estimates. Zacks Consensus Estimates have Illumina’s revenue growth around 12.8% along with earnings growth of 16.7% for the current fiscal year. The company’s revenue is expected to increase slightly more the following fiscal year. Overall, the signs for Illumina point to solid future growth, which could help its stock price grow in the coming months.

Bio-Techne Corp. TECH

Zacks Rank #1 (Strong Buy)

Minneapolis-based Bio-Techne is a holding company for biotech and clinical diagnostic brands. Bio-Techne was recently upgraded to a Zacks Rank #1 (Strong Buy).  Analysts seem optimistic about the company as it has received multiple upward earnings estimate revisions for the current fiscal year recently. Additionally, Zacks Consensus Estimates call for earnings growth to surge 14% in fiscal year 2020, on the back of 10% revenue growth that same year. Bio-Techne’s expected growth helps to make it a good option to add to a portfolio.

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Bio-Techne Corp (TECH) : Free Stock Analysis Report
 
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
 
Illumina, Inc. (ILMN) : Free Stock Analysis Report
 
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
 
Repligen Corporation (RGEN) : Free Stock Analysis Report
 
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