2 Biotech Stocks to Add to Your Portfolio in Q4
Despite sky-high prices and widespread macro headwinds, the biotech sector is expected to continue to thrive. The biotech industry contributed $2.90 trillion to the U.S. economy in 2021 and added 2.10 million jobs.
According to Ryan Helwig, Principal and Project Director with TEConomy Partners, "Looking forward, the industry will continue to play a critical role, not only in addressing global health challenges but in helping to grow the U.S. economy by generating high-quality jobs."
In addition, rising medical needs and chronic diseases are expected to drive more research and development in the biotech sector.
Furthermore, according to Precedence Research, the global biotechnology instrument market is expected to grow at a CAGR of 10.2% from 2022 to 2030. Also, investors' interest in biotech stocks is evident from the SPDR S&P Biotech ETF's (XBI) 2.7% gains over the past month.
Given the backdrop, investors might add quality biotech stocks Gilead Sciences, Inc. (GILD) and Biogen Inc. (BIIB) to their portfolios this quarter.
Gilead Sciences, Inc. (GILD)
Biopharmaceutical company GILD discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally for over three decades.
On November 2, GILD announced that the U.S. Food and Drug Administration approved its supplemental new drug application for Vemlidy® (tenofovir alafenamide) to treat chronic hepatitis B virus (HBV) infection. This approval indicates a significant step forward in GILD's research and portfolio diversification.
GILD's trodelvy's sales came in at $180 million for the third quarter that ended September 30, up 78.2% year-over-year. The company's current liabilities came in at $10.42 billion for the period ended September 30, 2022, compared to $11.61 billion for the period ended December 31, 2021.
Also, its total liabilities and equity came in at $62.56 billion, compared to $67.95 billion for the same period.
Street expects GILD's EPS to increase 115.9% year-over-year to $1.49 for the quarter ending December 2022. It surpassed EPS estimates in three of the four trailing quarters. Over the past nine months, the stock has gained 39.2% to close the last trading session at $85.42.
GILD's strong fundamentals are reflected in its POWR Ratings. The stock's overall A rating indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
GILD has an A grade for Value and Sentiment and a B for Quality. In the Biotech industry, it is ranked #3 out of 380 stocks. Click here for the additional POWR Ratings for Stability, Growth, and Momentum for GILD.
Biogen Inc. (BIIB)
BIIB, a biotech company, discovers, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases.
On October 13, 2022, BIIB and GoodRx Holdings, Inc. (GDRX), a leading consumer-focused digital healthcare platform, established a partnership to improve the patient and healthcare provider (HCP) experience when beginning a new specialized therapy. This partnership should benefit BIIB.
BIIB's net income came in at $1.13 billion for the third quarter that ended September 30, 2022, up 256.8% year-over-year. Moreover, its EPS came in at $7.84, up 253.2% year-over-year. Its total assets came in at $24.85 billion as of September 30, 2022, compared to $23.88 billion for the period ended December 31, 2021.
BIIB's EPS is expected to increase 10.5% year-over-year to $4.00 for the quarter ending March 2023. It surpassed EPS estimates in three of four trailing quarters. Over the past six months, the stock has gained 52.2% to close the last trading session at $303.45.
BIIB's overall A rating equates to a Strong Buy in our POWR Ratings system. It has an A grade for Value, Quality and a B for Sentiment. The stock is ranked #9 in the same industry.
We've also rated BIIB for Stability, Momentum, and Growth. Get all BIIB ratings here.
GILD shares were trading at $86.26 per share on Friday afternoon, up $0.84 (+0.98%). Year-to-date, GILD has gained 23.20%, versus a -14.31% rise in the benchmark S&P 500 index during the same period.