4 Biotech Stocks to Buy for the Q2 2021

NASDAQ: AMGN | Amgen Inc. News, Ratings, and Charts

AMGN – The biotechnology industry is expected to expand significantly over the next few years on the back of favorable government initiatives and the emergence of innovative players. Amgen (AMGN), Gilead Sciences (GILD), Qiagen (QGEN), and Jazz (JAZZ) already possess strong portfolios of products and are innovating quickly to capitalize on the industry’s growth. So, let’s have a closer look at the investment opportunity we think these names present.

The global biotechnology market is expected to expand at a CAGR of 15.8% between 2021 – 2028. Government efforts to make the regulatory process more efficient, such as standardizing clinical studies and speeding up the product approval process, should help drive the sector’s growth. Biotech solutions are the future for next-generation healthcare, and new developments in this field are happening at a rapid clip. Currently, approximately four of every 10 drugs approved are biotech derived.

For their last reported quarter, biotech companies have largely met or surpassed expectations and they are expected to do so in the coming quarters also. As the focus gradually shifts from COVID-19 to treatments for other aliments, biotech companies that possess solid fundamentals and strong portfolios of products should thrive this year and beyond.

Amgen, Inc. (AMGN), Gilead Sciences, Inc. (GILD), Qiagen NV (QGEN), and Jazz Pharmaceuticals (JAZZ) have been consistently reporting  growth in revenues and earnings. And, given the expected growth of the biotech market, we think these companies are well positioned to deliver solid returns in the coming months.

Click here to checkout our Healthcare Sector Report for 2021

Amgen, Inc. (AMGN)

AMGN develops, manufactures, and markets human therapeutics. The company has worldwide operations. Its stock  has gained 22.7% over the past year to close yesterday’s trading session at $248.81.

AMGN  recently entered  an agreement to acquire Rodeo Therapeutics, a privately held biopharmaceutical company. The company is also moving to acquire  Five Prime Therapeutics for a consideration of $1.9 billion.

For the quarter ended December 31, 2020, AMGN’s  revenues increased 7% year-over-year. The company’s product sales grew 8% during the same period.

AMGN is expected to see  revenue growth of 2% for the quarter ended March 31, and 4% in 2021. Its  EPS is estimated to grow 1.4% in 2021 and 7% per annum over the next five years.

AMGN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary ratings system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

It has an A grade for Quality, and B for Stability and Value. In the Biotech industry, it is ranked #12 of 484 stocks.

In total, we rate AMGN on eight different levels. Beyond what we’ve stated above, we have also given AMGN grades for Momentum, Growth, and Sentiment. Get all the AMGN ratings here.

Gilead Sciences, Inc. (GILD)

GILD operates as a biopharmaceutical company that develops and markets medication in areas of unmet needs. The company focuses primarily on HIV/AIDS, liver disease, and serious cardiovascular conditions. GILD’s stock price has increased 10.9% year-to-date and its last closing price was $64.63.

GILD’s revenue is expected to grow 20.5% for the quarter ended March 31, and 0.4% in 2021. Its EPS is estimated to grow 1.1% in 2021 and at a rate of 3.26% per annum over the next five years.

For the fourth quarter, the company’s product sales increased 26% compared to the same period last year. GILD’s revenue from royalty, contract, and other sources increased 12% during the same period.

GILD has partnered with Merck to develop and market treatment combinations of Lenacapavir and Islatravir in HIV. The company has also completed the acquisition of MYR GmbH.

It’s no surprise that GILD has an overall B rating, which equates to Buy in our POWR Ratings system. GILD has an A  grade  for Value, and B for Growth and Quality. In the same industry, it is ranked #9 of 484 stocks.

Click here to see the additional POWR Ratings for GILD (Momentum, Sentiment and Stability).

Qiagen NV (QGEN)

QGEN delivers  molecular diagnostics, bioinformatics, and genome sequencing services. The company is headquartered in The Netherlands.

For the fourth quarter, the company saw a 38%  increase in net sales versus the same period last year. The company’s adjusted EPS grew 52% during the same period. QGEN has returned 17% over the past year to close yesterday’s trading session at $48.69.

QGEN recently received Emergency-Use authorization from the U.S. FDA for its NeuMoDx Multiplex Test for coronavirus testing. QGEN has also launched its QIAcube Connect MDx platform that allows for automated sample testing in diagnostic labs.

QGEN is expected to see49.8% revenue growth for the quarter ended March 31, 2021 and 21.2% in 2021. Analysts expect the company’s EPS to grow 15.8% in 2021 and 15.7% per annum over the next five years.

QGEN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary ratings system. QGEN has a B grade for Value, Growth, and Quality. In the same industry, it is ranked #6 of 484 stocks.

Beyond what we stated above we’ve also  given QGEN grades for Momentum, Sentiment, and Stability. Get all the QGEN ratings here.

Jazz Pharmaceuticals (JAZZ)

JAZZ has a focus on developing and marketing biopharmaceutical products in the sleep and oncology segments. The company has international operations.

JAZZ recently received U.S. FDA approval for Vyxeos, which is  for the treatment of Secondary Acute Myeloid Leukemia in pediatric patients. JAZZ has entered into definitive agreements to acquire GW Pharmaceuticals.

For the fourth quarter, the company’s total revenues increased 9% year-over-year. Its  GAAP EPS increased to $2.33  from  $1.29  during the same period. JAZZ’s stock has gained 64.8% over the past year and its last closing price was 164.37%.

JAZZ’s revenue is expected to grow 14.8% for the quarter ended March 31 and 11.8% in 2021. Its  EPS is estimated to grow 30.3% in 2021 and at a rate of 11.4% per annum over the next five years.

It’s no surprise that JAZZ has an overall B rating, which equates to Buy in our POWR Ratings system. JAZZ has an A  grade  for Value, and B for Growth and Quality. In the same industry, it is ranked #7 of 484 stocks.

Click here to see the additional POWR Ratings for JAZZ (Momentum, Sentiment and Stability).

The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

Click here to checkout our Healthcare Sector Report for 2021

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AMGN shares were trading at $248.50 per share on Thursday afternoon, down $0.31 (-0.12%). Year-to-date, AMGN has gained 8.88%, versus a 7.27% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaryaman Aashind


Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...


More Resources for the Stocks in this Article

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JAZZGet RatingGet RatingGet Rating

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