NVSEF - Top biotech stocks to watch in 2022
The year 2021, was relatively mixed for biotech stocks with some posting significant gains while others pulled back dramatically. However, moving into 2022, we could see a significant rebound based on products launched in 2021, or in anticipation of new product announcements.
Sage Therapeutics
Sage Therapeutics Inc. ( NASDAQ:SAGE ) schizophrenia and major depressive disorders. The company reported on the 15th of September that the FDA had granted Fast Track Designation to its drug SAGE-718, paving the way for the company to develop the drug as a potential treatment for Huntington’s disease.
The stock trades at an attractive P/E ratio of 3.73, making it an exciting option for value investors. Moreover, analysts expect Sage’s earnings to grow by more than 185% this year, before rising at an average annual rate of 41% over the next five years.
Technically, Sage Therapeutics shares seem to be trading within an ascending channel formation in the intraday chart. As a result, the stock has advanced to trade above the 100-day moving average.
However, given its exciting valuation, anticipation for new product development and growth prospects, investors could target extended gains at about $46.06, or higher at $49.17, while $40.21 and $36.92 are crucial support zones.
CRISPR Therapeutics AG
CRISPR Therapeutics AG ( NASDAQ:CRSP ) develops treatments for diseases in the areas of oncology, regenerative medicine, and hemoglobinopathy.
Its partnership with Vertex Pharmaceuticals Inc. ( NASDAQ:VRTX ) helped propel its meteoric revenue growth in 2021, setting it well for momentum investing in 2022. The stock trades at a reasonable P/E ratio after plunging more than 50% since June.
Technically, CRISPR shares seem to be trading within an ascending channel formation in the intraday chart. However, the stock recently pulled back to find the trendline support, creating an opportunity for a technical rebound.
Therefore, investors could target extended rebound profits at about $83.04, or higher at $89.90, while $69.84 is a crucial support level.
Novartis
Novartis AG ( OTCMKTS:NVSEF ) is another stock that plummeted significantly before mounting a late rebound towards the end of the year. Novartis shares fell by more than 15% between the 17th of August and the 13th of December, before rallying nearly 10% to trim the year-to-date declines to just over 7%.
Therefore, investors will be looking forward to the recovery continuing in 2022, given the company’s exciting valuation of 13.24 in the forward P/E ratio.
Technically, Novartis shares seem to be trading within a sharply ascending channel formation in the intraday chart.
However, although the stock has surged into overbought conditions, investors could still target profits at about $89.29 and $90.93, amid its compelling forward P/E, while $86.35 and $84.44 are support levels.
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