Biotechnology might be one of the most peculiar stock investments in the market due to its ambivalent nature. As investing in biotech stocks can bring traders double of what they have invested, a single bad factor in the market can make severe losses, going even towards losing 90% of what you have originally invested.
With biotechnology companies, even though investing in stocks is enabled, it is often the case that these companies end up without a final product or a service after spending millions on researching and investments.
That is why investing in biotech stocks should be probably done with precaution. However, in case you are looking for biotech stocks to invest in, we are presenting 4 underappreciated biotech stocks that should be considered in 2018 and potentially beyond the current year.
Biotech Stock #1: KAMADA (NASDAQ: KMDA)
Kamada is an Israeli based company founded back in 1990, with a subsidiary company called Kamada Assets Ltd. founded in 2001. Kamada is focused on designing and manufacturing plasma-derived protein therapeutics for orphan diseases.
Kamada can’t be exactly called underappreciated since it has a year to date gains go up to 12.4% with 39 times forward earnings and 18 times trailing earnings. So, if KMDA stocks are performing in a decent manner for the past year, how come it is ranked as unappreciated?
The answer is simple: not many traders seem to be interested in KAMADA biotech stocks, even though it has been performing well on a year to date basis.
The lack of interest might be the definitive factor to have lowered the value of these biotech stocks, which is easily seen through the lowered volumes of shares, showing barely 5500 shares at the current moment.
Moreover, KAMADA makes up for a drug manufacturer with a long and successful history in the industry of biotechnology, also carrying minor debts when compared to its revenue with near-steady revenue growth and profitable margins.
The reason why KMDA is not ranked highly at this moment is the fact that its stocks could turn passive. However, it surely deserves to be kept close attention to.
Biotech Stock #2: Gilead Sciences (NASDAQ: GILD)
Gilead Sciences Inc. is a biopharmaceutical company focused on research, discovery, and commercialization of innovative medicines. Gilead Sciences Inc. holds the revenue of 26.11 billion dollars making it a serious player in the biotechnology industry.
However, as more than several biotech stocks plummeted at the beginning of this year, GILD makes up for one of those stocks, making it an underappreciated biotech stock despite the potential it holds.
To make things worse for GILD, the stocks were performing well in the market until the fallout in January of 2018, with the resignation of Gilead’s CEO and the fall of revenues for hepatitis C drug by over 60%.
Still, GILD has proper profitability margins, making it eligible for a close watch.
Biotech Stock #3: AbbVie (NYSE: ABBV)
AbbVie Inc. is a development and research pharmaceutical company with acquiring a massive momentum with one of their most popular drugs, Humira.
Humira is designed to remove and diminish, as well as ease the pain and inflammation caused by autoimmune diseases and conditions, also bringing decent profit to the company, which also makes it a desirable biotech stock.
In the course of 6 years since Humira was officially released as ready for patients, AbbVie showed a significant revenue growth from 7.9 billion dollars to over 18 billion dollars only on selling and distributing Humira, gaining 15% of the rise in revenues.
However, although Humira stands for a pharmaceutical gainer, ABBV stocks still seem to be experiencing a lack of interest with only 4.6% of rise from year to date.
Biotech Stock #4: Geron (NASDAQ: GERN)
Geron Corporation is a public biotechnology company specialized in manufacturing and developing therapeutics for cancer with telomerase inhibition, specialized in oncology.
GERN stocks might actually be the best-performing stocks on the list based on the year to date revenue describing an amazing pace of growth of 113%. Geron also made partners with Johnson and Johnson in order to develop and commercialize a special treatment for hematologic myeloid malignancies.
However, the company is still very young when it comes to its market capitalization that carries 720 million dollars in oppose to similar biotechno0logy companies that are holding dozens of billions of dollars in revenue.
Moreover, in case the mentioned treatment turns out to be a success, Geron can gain a lot of momentum regarding Johnson and Johnson partnership, which means that GERN stocks might be taken over the potentially positive influence.