TECH - 7 Biotech Stocks That Could Breathe New Life Into Your Portfolio

2024-05-20 13:34:36 ET

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Fundamentally, one of the biggest advantages of biotech stocks to buy centers on the underlying prioritization. While the media focuses on attaining wealth, that doesn’t mean much if you don’t have health. Therefore, this compelling subcategory of the broader healthcare market deserves attention.

In addition, while the market has been robust – with the Dow Jones Industrial Average breaching the 40,000-point level – many concerns exist. Inflation remains elevated as are borrowing costs. Delinquency rates are rising as people turn to credit cards to make ends meet.

It’s a tough backdrop. Yet again, wealth-related concerns take a backseat to health concerns. With that in mind, below are biotech stocks to buy.

Bio-Techne (TECH)

Based in Minneapolis, Minnesota, Bio-Techne (NASDAQ: TECH ) develops, manufactures and sells life science reagents, instruments and services for the research and clinical diagnostics markets in the U.S. and other international markets. It operates through two segments: Protein Sciences, and Diagnostics and Genomics. The protein side offers advanced innovations such as cell and gene therapy, making TECH a promising idea for biotech stocks to buy.

In the past four quarters since the first quarter of 2024, Bio-Techne has incurred some shaky performances. That said, its Q1 report delivered earnings of 48 cents per share, up 3 cents against the expected target. On a trailing-12-month ( TTM ) basis, TECH is looking at net income of $202.96 million.

For fiscal 2024, covering experts anticipate earnings per share to come in at $1.78 on sales of $1.16 billion. That’s mixed compared to last year’s results of $1.99 EPS on revenue of $1.14 billion. However, fiscal 2025 could see EPS rise to $2.04 with a top line of $1.25 billion.

Regeneron Pharmaceuticals (REGN)

Headquartered in Tarrytown, New York, Regeneron Pharmaceuticals (NASDAQ: REGN ) discovers, invents, develops, manufactures and commercializes medicines for treating myriad diseases. One of the company’s main products includes EYLEA , an injection to treat wet age-related macular degeneration ( AMD ). EYLEA also addresses diabetic macular edema. Further, Regeneron features a host of other therapeutics, addressing cardiovascular diseases to cancer.

Generally speaking, Regeneron is a consistent performer. That said, it did miss slightly in Q1 2024. Nevertheless, the company’s overall positive earnings surprise came out to 4.33%. Regeneron features a TTM net income of $3.86 billion on revenue of $13.1 billion. Its profit margin stands at a healthy 29.45%.

For fiscal 2024, experts believe that EPS will rise to $44.20 on sales of $13.83 billion. Last year, the company posted earnings of $43.79 per share on sales of $13.12 billion. Looking out to fiscal 2025, these metrics could improve to $47.87 EPS on revenue of $14.95 billion. With its steady hand, REGN ranks among the biotech stocks to buy.

United Therapeutics (UTHR)

Hailing from Silver Spring, Maryland, United Therapeutics (NASDAQ: UTHR ) engages in the development and commercialization of products to address the unmet medical needs of patients suffering from chronic and life-threatening diseases. In particular, United offers Remodulin , an injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms tied to exercise.

One of the standout features for United is its earnings performances. In the trailing four quarters since Q1 2024, the company’s average positive earnings surprise landed at 9.1%. Over the past 12 months, net income reached $1.05 billion on sales of $2.5 billion. The company’s operating margin stands at 52.57% while its profit margin is 42.05%.

For fiscal 2024, analysts believe EPS will fly up to $24.24 on sales of $2.73 billion. That’s a sizable improvement over last year’s results of $19.81 EPS on revenue of $2.33 billion. One year later, it’s possible to see EPS improve again to $26.46 with a top line of $2.96 billion. Given its upward potential, UTHR ranks among the biotech stocks to buy.

AstraZeneca (AZN)

Based in the U.K., AstraZeneca (NASAQ: AZN ) falls under the drug manufacturing category. Per its public profile , the company focuses on the discovery, development, manufacture and commercialization of prescription medicines. Among its therapeutic focuses are cardiovascular, renal and metabolism-based conditions. As well, the company features an oncology portfolio.

To be fair, AstraZeneca’s financials have been hit or miss. In the company’s last two quarters (Q4 2023 and Q1 2024), its average earnings surprise came out to 12.25% below breakeven. However, in Q2 and Q3 of last year, the average surprise landed at 8.65%. On a TTM basis, the drug manufacturer is looking at net income of $6.33 billion with a top line of $47.61 billion.

For fiscal 2024, analysts believe EPS will rise to $4.06 on sales of $52.06 billion. That’s a sizable lift from last year, where EPS was $3.63 on revenue of $45.81 billion. For fiscal 2025, EPS can improve stoutly to $5.72 with a top line of $56.18 billion. With a forward dividend yield of nearly 2%, AZN makes an interesting case for biotech stocks to buy.

Amgen (AMGN)

Headquartered in Thousand Oaks, California, Amgen (NASDAQ: AMGN ) also operates in the drug manufacturing space. Per its corporate profile , Amgen discovers, develops, manufactures and delivers human therapeutics worldwide. Its mainline products include Enbrel , which is deployed to treat plaque psoriasis, rheumatoid arthritis and psoriatic arthritis. It also features myriad other therapeutics, including for multiple myeloma.

Recently, investors have gravitated toward AMGN thanks to the company’s consistent bottom-line print. In the past four quarters since Q1, Amgen’s average positive earnings surprise landed at 5.55%. Nominally, net income on a TTM basis clocked in at $3.76 billion with a top line of $29.53 billion. Further, the company’s profit margin is 12.74%.

For fiscal 2024, experts believe EPS could swing up to $19.44 on revenue of $33.01 billion. That’s a big jump from last year’s results of $17.42 EPS on sales of $26.34 billion. Moreover, 2024’s blue-sky revenue target stands at $33.88 billion. With a decent forward yield of 2.88%, AMGN represents one of the biotech stocks to buy.

Genmab (GMAB)

Hailing from Denmark, Genmab (NASDAQ: GMAB ) develops antibody therapeutics for the treatment of cancer and other diseases. Notably, the company markets a therapeutic called DARZALEX , a human monoclonal antibody for the treatment of multiple myeloma. It also offers teprotumumab for the treatment of thyroid eye disease along with Amivantamab for advanced or metastatic gastric or esophageal cancer.

To be upfront, Genmab financially has been a hit-or-miss affair. And to be blunt about it, the company has been missing more so than hitting. However, when circumstances align, it does so robustly. For example, in Q1, the company posted EPS of 29 cents, well exceeding the consensus view of 14 cents.

For fiscal 2024, analysts anticipate EPS to improve to $1.08 on sales of $2.87 billion. Last year, the company posted EPS of 96 cents on revenue of $2.39 billion. Further, another big year may be in store in 2025, with EPS possibly reaching $1.49 with a top line of $3.47 billion. It’s one of the biotech stocks to buy or at least to put on the watch list.

Novo Nordisk (NVO)

Another Danish enterprise, Novo Nordisk (NYSE: NVO ) has been in the news lately for its weight-loss drugs . These products fall under the company’s Diabetes and Obesity Care segment. However, Novo is also known for its Rare Disease segment. Here, the company focuses on areas such as rare blood disorders, endocrine disorders and hormone replacement therapy.

Interestingly, the biotech incurred an earnings miss in Q2, posting EPS of 63 cents against a target of 65 cents. However, the average positive earnings surprise from then to Q1 2024 came out to 4.25%. Over the past 12 months, net income clocked in at $89.28 billion on revenue of $54.6 billion.

For the current fiscal year, analysts believe EPS will rise to $3.51 on sales of $42.73 billion. Unsurprisingly, that’s a big step from last year’s earnings of $2.66 per share on sales of $33.13 billion. Further, in fiscal 2025, EPS could soar to $4.29 on revenue of $51.37 billion. Carrying a moderate buy assessment among analysts, it’s one of the biotech stocks to buy.

On the date of publication, Josh Enomoto 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 .

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