SAVA - Which Biotech Stock Will Shock the Market in 2022?
In 2019, tiny Axsome Therapeutics (NASDAQ: AXSM) emerged from micro-cap obscurity to become the best-performing stock in the market, rising by an amazing 3,600% in a year. In 2020, another tiny biotech, Novavax (NASDAQ: NVAX) , came out of nowhere to stomp the stock market, with its share price skyrocketing by 2,700% . For most of 2021, yet another small biotech has been the top-performing stock in the market, as Cassava Sciences (NASDAQ: SAVA) jumped from under $7 a share in January to $123 a share on Aug. 24. (Whether it will keep its lead is another question, as the volatility is savage -- the stock is down to $52 as of Friday morning after news of a citizen petition against the company.)
What's fascinating about the biotech sector in particular is how fast it moves. The sector is notorious for amazing price swings -- in either direction -- that can happen overnight. So why is that? Why are biotech stocks in particular so volatile? Why do they keep leading the market every year? And what biotech stock might -- repeat, might -- pull off this feat next year? Let's analyze why Axsome, Novavax, and Cassava zoomed higher over the last few years, and why I think Pieris Pharmaceutical (NASDAQ: PIRS) has a chance at a similar remarkable performance in 2022.
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Which Biotech Stock Will Shock the Market in 2022?