Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

The Zacks Analyst Blog Highlights: Amgen, Celgene, Gilead Sciences, Vertex Pharmaceuticals and Nasdaq Biotechnology Index ETF



  The Zacks Analyst Blog Highlights: Amgen, Celgene, Gilead Sciences, Vertex
              Pharmaceuticals and Nasdaq Biotechnology Index ETF

PR Newswire

CHICAGO, Jan. 28, 2013

CHICAGO, Jan. 28, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Amgen (Nasdaq:AMGN), Celgene
(Nasdaq:CELG), Gilead Sciences (Nasdaq:GILD), Vertex Pharmaceuticals
(Nasdaq:VRTX) and Nasdaq Biotechnology Index ETF (Nasdaq:IBB).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday's Analyst Blog:

Safest Way to Play Biotech

Investing in biotechnology can be exciting, profitable, and loaded with land
mines. For every company that hits the jackpot with a new marketable drug that
makes it through the FDA gauntlets, there are a dozen stocks that run-up on
such hopes and then crash and burn when the trials fail.

For this reason, some investors consider biotech stocks to be binary trades.
Years ago I met some option traders who specialized in these "event" stocks
and they called them "bipolar."

Whatever you want to call them, you have three basic routes to go if you still
want to participate in biotech stocks:

1) Stick with large-cap, established businesses with deep and broad drug
pipelines like Amgen (Nasdaq:AMGN), Celgene (Nasdaq:CELG) and Gilead Sciences
(Nasdaq:GILD).

2) Plow into lots of homework on the small and mid cap names with promising
new research and good Zacks Rank earnings momentum. Note than many of these
companies may be as yet unprofitable, but they still often earn a Zacks #1 or
#2 rank if the trend of Earnings Estimate Revisions (EER) is rising
sufficiently.

If analysts suddenly see a company making it through some FDA hurdles of
testing with one or more drugs for some form of cancer or other medical need
that represents a significant market opportunity, they will begin raising
estimates to account for this potential profitability. The takeover component
of valuation is also a factor since big biopharma loves to scoop up hot new
R&D.

Small and mid-cap biotech companies that I had some homework and investing
success with in 2012 were Vertex Pharmaceuticals (Nasdaq:VRTX),  among others.

But even these stocks had wild swings and if you were on the wrong side of the
earnings or FDA trend, you got burned. Which brings me to a third way to play
biotech with less volatility and company-specific risk.

3) Buy the Nasdaq Biotechnology Index ETF (Nasdaq:IBB). In March 2009, when it
looked like stocks had made a trade-able bottom during the financial crisis, I
wasn't out there picking individual stocks for people. But in my first
appearance on business TV, I said it was a no-brainer for investors to put
money into the future by buying two ETFs: Technology through XLK and Biotech
through IBB, which was trading around $63 at the time.

The IBB is near its all-time highs above $148. Am I saying you should buy it
now at $145 after you just missed the drop in November to $125?

Yes, I am. At least a partial allocation. If the broad market goes on to make
new highs above S&P 1550, biotechs will be part of the story and the IBB will
make new highs as well.

And in the big picture, if you want exposure to the future of drug medicine,
this is one of the safest ways you are going to find. The current waves of
growth here are in R&D that is exploiting new knowledge of the human genome to
create new drugs and treatments.

Genetic targeting of diseases is a multi-billion dollar growth area that has
large pharma firms like Pfizer, Bristol-Meyers and Merck scrambling to buy up
younger companies with innovative science.

My best sense of the future of medicine is that 5-years from now more than
half of the names in the top 10 of IBB will be different, but this index ETF
with probably have net assets that put its price north of $200.

Even if I'm wrong, buying below $150 and trading the swings on the way to $175
in a few years isn't a bad way to participate either.

Want more from Zacks Equity Research? Subscribe to the free Profit from the
Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative
analysis to help investors know what stocks to buy and which to sell for the
long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded
stocks. Our analysts are organized by industry which gives them keen insights
to developments that affect company profits and stock performance.
Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the
latest analysis from Zacks Equity Research. Subscribe to this free newsletter
today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results. Amongst his
many accomplishments was the formation of his proprietary stock picking
system; the Zacks Rank, which continues to outperform the market by nearly a 3
to 1 margin. The best way to unlock the profitable stock recommendations and
market insights of Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady flow of
Profitable ideas GUARANTEED to be worth your time! Register for your free
subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance
numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any investments.
Nothing herein should be construed as an offer or solicitation to buy or sell
any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

SOURCE Zacks Investment Research, Inc.

Website: http://www.zacks.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement