4 Biotech Stocks For Your Watchlist This Week
Biotechnology stocks, also known as biotech stocks, are shares in publicly traded companies that are involved in the medical and agricultural applications of biotechnology. Biotech stocks can be volatile, but they have the potential to offer investors significant returns. The NASDAQ Biotechnology Index (NASDAQ: NBI), which tracks the performance of Biotech stocks trading on the Nasdaq exchange, has outperformed the S&P 500 by approximately 8% over the past decade.
Additionally, biotech stocks tend to be more volatile than the broader market due to the sector’s reliance on regulatory approvals and scientific breakthroughs. However, biotech stocks also offer investors the opportunity to participate in the growth of groundbreaking new industries such as gene therapy and regenerative medicine. As a result, biotech stocks can be an attractive investment for risk-tolerant investors. Given this, here are four top biotech stocks to check out in the stock market this week.
Best Biotech Stocks To Buy [Or Sell] Now
AbbVie (ABBV Stock)
First, AbbVie Inc. (ABBV) is a research-based biopharmaceutical company. In brief, AbbVie discovers, develops, and markets both biologic and small molecule drugs. The company focuses on treating conditions such as chronic autoimmune diseases, cancer, virology, and neuroscience. AbbVie Inc. was founded in 2013 after AbbVie split from Abbott Laboratories (NYSE: ABT). Aside from that, just this past week the company announced it declared its quarterly dividend.
In detail, AbbVie’s Board of Directors declared a quarterly cash dividend of $1.41 per share. What’s more, since the company was founded in 2013, AbbVie has increased its dividend to shareholders by more than 250%. Separate from that, in July the company announced a beat for its 2nd quarter 2022 financial results. Getting straight to it, AbbVie reported revenue for the quarter of $14.6 billion. Meanwhile, they posted earnings of $3.51 per share. For context, the analysts’ consensus estimates for the quarter were earnings per share of $3.42 and revenue of $14.6 billion.
So far in 2022, ABBV stock has outperformed the broader markets up 4.43% on the year. Going into the trading week, shares of ABBV stock are trading at $141.40 per share. With this in mind, will you be adding ABBV stock to your list of biotech stocks to watch?
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Pfizer (PFE Stock)
Next, Pfizer Inc. (PFE) is an American multinational pharmaceutical corporation. For starters, Pfizer develops and produces medicines and vaccines for a wide range of medical disciplines, including immunology, oncology, cardiology, diabetology/endocrinology, and neurology. Today, Pfizer offers its shareholders an annual dividend yield of 3.34%. In July, Pfizer reported stronger-than-expected second-quarter 2022 financial results.
Diving in, the company posted earnings of $2.04 per share, with revenue of $27.7 billion. This beat analysts’ estimates that were earnings of $1.75 per share and revenue of $26.0 billion. Additionally, Pfizer reported an increase in revenue by 46.2% during the same period, in 2021. What’s more, the company reaffirmed its full-year 2022 earnings outlook. Specifically, the company said it estimates 2022 earnings of $6.30 to 6.45 per share. Meanwhile, the company also reaffirmed its revenue outlook of $98.0 billion to $102.0 billion.
Moving along, shares of PFE stock are down over 15% year-to-date. Pfizer stock is going to be opening the trading week at $48.00 per share. Given the strength of its recent quarter, could now be an opportunity to buy Pfizer stock for your long-term portfolio?
Biogen (BIIB Stock)
Biogen Inc. (BIIB) is a global biotech company based in the United States. In short, the company discovers, develops, manufactures, and markets innovative therapies for patients living with serious neurological and neurodegenerative diseases. Also in July, Biogen reported better-than-estimated second quarter 2022 earnings results.
In the report, the biotech company posted earnings per share of $5.25 per share and revenue of $2.6 billion. Meanwhile, Wall Street’s estimates for the quarter were earnings of $4.09 per share and revenue of $2.5 billion. Separate from that, Biogen announced that it estimates 2022 earnings of $15.25 to $16.75 per share. They also gave guidance on revenue in the range of $9.9 billion and $10.10 billion.
Though shares of BIIB stock are down 13% since the start of the year, they have rebounded more than 5% just last week. BIIB stock is set to open this trading week at $211.84 per share. All in all, is Biogen stock a good biotech stock to buy right now?
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Amgen (AMGN Stock)
Last but not least, Amgen Inc. (AMGN) is a global biopharmaceutical company. Amgen focuses on the development, manufacture, and marketing of human therapeutics. In addition, Amgen has six main areas of focus: oncology, nephrology, neuroscience, inflammatory conditions, bone health, and cardiovascular disease.
Currently, Amgen shareholders enjoy an annual dividend yield of 3.20%. In August, the company posted stronger-than-expected Q2 2022 financial results. Diving in, AMGN reported second-quarter earnings of $4.65 per share. In addition, the company notched in revenue of $6.6 billion for Q2. This is versus the consensus earnings estimate of $4.40 per share and revenue of $6.5 billion.
Additionally, Amgen reaffirmed its guidance and continues to estimate 2022 earnings of $17 to $18 per share. Aside from that, Amgen now estimates revenue in the range of $25.50 billion to $26.40 billion. Continuing on, shares of AMGN stock are set to open this trading week at $247.69 per share. All in all, do you think Amgen deserves a spot on your biotech stocks watchlist?