Top Biotech Stock
Some biotech stocks have been on a real tear lately in 2013, but some others have been sleeping. If you don’t want to miss the bandwagon and you want to cash in on biotech stocks for the rest of the year and beyond, then take a look at these winners and one loser, too.
What Is Biotechnology?
According to the United Nations Convention on Biological Diversity, biotechnology is described as “any technological application that uses biological systems, living organisms or derivatives thereof, to make or modify products or processes for specific use.” Companies in the biotechnology field include pure biotech plays, medical stocks, and pharmaceuticals. Biotech even has a huge impact on agriculture and other fields, as well.
Now, let’s take a look at some of these stocks that have been soaring lately in the biotech field. These are the top biotech stocks of the year so far, and some of them have still got a long way to go in terms of upside potential so take a look at the list below. You can use this list as a jump-start to your research into the biotech field. Decide which types of companies you’re interested in buying. The smaller lower cap companies are typically a lot riskier than companies which have already established themselves in the field and years of profitable quarters, so you’ll have to determine what you’re comfortable with in terms of risk and reward on your own. Having said that, without further adieu, here are some of the best biotech stocks to check out.
Best Biotech Stock Picks of 2013
Acadia Pharmaceuticals (Nasdaq: ACAD) is a bio-pharmaceutical company with a drug on the way to help patients of Parkinson’s disease. They specialize in addressing holes in the marketplace to address unmet medical needs. They’re up over 200% in the past 52 weeks, and over 300% year-to-date. That’s a pretty triumphant run, and as their drugs get closer to market the winning streak should continue over at ACAD. The run up from around $2.00 to over $20.00 has been sharp and steady, it’s the type of chart that investors dream of and it’s backed by good news and positive momentum. Their price target has recently been rained to $24 at a certain investment bank, a move that’s been happening a lot as they continue to blow right past expectations.
Clovis Oncology (Nasdaq: CLVS) is another bio-pharmaceutical company that has been on an absolute tear this past year, with gains well over 300% in the past 52 weeks. They develop anti-cancer agents and their share prices have really taken off over the past few months. It can be difficult to pull the trigger on these stocks that have already had such a big run, so there’s a certain point where you need to set the hype and the potential aside and focus on the things you know for sure like the fundamentals of the company itself.
Worst Biotech Stock of 2013
Putting those winners aside, let’s take a look at the very worst performer in the biotech space among large companies, so far, in 2013. They still have time to pull a rabbit out of their head, but otherwise it looks like this company is going to offer little more than a tax write-off for a lot of their investors.
Infinity Pharmaceuticals (Nasdaq: INFI) has had a rough year. With a high of around $50, and a current price closer to $15, it’s been quite a tumble. Sometimes with speculative stocks, especially in the tech space (Even when it’s biotech), it can be a bit like rolling the dice. Everything can seem like it’s in place, strong leadership, a good portfolio of patents and potential products, promising research, all the excitement in the world… But it doesn’t take much to bring things back down to earth when a stock gets into overbought territory, which is exactly what happened here.
Final Thoughts On Choosing The Top Biotech Stocks
There are plenty more biotech stocks to choose from, we just wanted to feature the top performers so far this year (And one stock that hasn’t been so lucky – the worst performer in the field.)
It’s a nice feeling to invest in a company that’s working to help patients of all sorts of different diseases, but things don’t always go according to planned and it’s a very competitive industry so keep that in mind. Lastly, when choosing among the top biotech stocks, you wouldn’t want to have all of your portfolio in one industry, no matter which industry that is, so it’s always important to diversify between companies as well as between sectors.