2 "Strong Buy" Biotech Stocks Under $20

: TAK | Takeda Pharmaceutical Company Limited News, Ratings, and Charts

TAK – Most companies operating in the biotech sector have been overshadowed as investors and others have focused on companies with COVID-19 therapy drugs or vaccinations in their development pipelines or product portfolios. However, relatively low-priced companies such as Takeda Pharmaceutical (TAK) and SIGA Technologies (SIGA), with diverse product portfolios for the treatment of other critical ailments, are expected to gain traction as the COVID-19 vaccines curb the virus’ spread. Let’s look closer.

The biopharma industry has been focused on the COVID-19 vaccine or drug development since the beginning of the pandemic. But the industry’s myopia has done well by investors, as evidenced by iShares Nasdaq Biotechnology ETF’s (IBB) 38.7% return over the past year. However, while the industry has clearly gained significant traction, major companies not actively involved in the COVID-19 vaccine or drug development have been  overshadowed and to a degree overlooked by investors.

Some of these under the radar companies have impressive product pipelines, however, with state-of-the-art research and development facilities. They have been making substantial progress in the rare diseases and critical ailments field, for example.

Because the ongoing coronavirus vaccination drive is expected to inoculate most Western countries’ populations this year, the focus of the biopharma industry could shift to other life-threatening diseases soon. Thus, we think relatively low-priced companies like Takeda Pharmaceutical Company Limited (TAK) and SIGA Technologies, Inc. (SIGA) could witness significant gains in the foreseeable future.

Takeda Pharmaceutical Company Limited (TAK)

Based in Japan, TAK is a value-based, research and development driven Biopharmaceutical Company engaged in the manufacture and sale of pharmaceutical products, general medical products, quasi drugs and healthcare products. The Company’s research and development functions are concentrated in four therapeutic areas: oncology, digestive system diseases, rare diseases and neurology.

TAK recently announced the completion of sale of its portfolio of select products to Hypera Pharma for a total value of $825 million. The divestment includes select over the counter and prescription pharmaceutical products. The  proceeds from the sale will  be used to reduce TAK’s debt.

Last month, TAK earned an industry-leading position within the 2021 Access to Medicine (AtM) Index. Specifically, the company ranked sixth overall and is leading the pharmaceutical industry in Governance of Access criteria. The accolade recognizes TAK’s strong performance in the areas of health system strengthening, compliance and R&D capacity building.

TAK’s operating profit has increased 120.7% year-over-year to $3.48 billion for the nine-month period ended December 31, 2020. Its net profit has increased 320.8% from its year-ago value to $1.74 billion over the nine-month period, yielding an EPS of $1.11, up 319.5% year-over-year.

Analysts expect TAK’s revenues to grow 2.7% year-over-year to $7.39 million in the current quarter (ending March 31, 2021). A consensus EPS estimate of $0.69 in the fiscal 2021 (ending March 31, 2022) represents  a 430.8% improvement year-over-year. The stock has gained 2.6% over the past three months to close yesterday’s trading session at $17.53.

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

TAK has an A grade for both Growth and Value, and a B grade for Stability. In the 482-stock Biotech Industry, it is ranked #7.

In total, we rate TAK on eight different levels. Beyond what we stated above, we have also given TAK grades for Momentum, Industry, Quality and Sentiment. Get all TAK’s ratings here.

SIGA Technologies, Inc. (SIGA)

Based in New York, SIGA is a commercial-stage pharmaceutical company focused on the health security market. TPOXX is one of SIGA’s leading products known for the treatment of smallpox.

In the third quarter of 2020, SIGA delivered approximately 134,000 courses of oral TPOXX to the strategic national stockpile (SNS), generating revenue of approximately $78 million from the deliveries. . In October, the company delivered a further approximately 112,000 courses of oral TPOXX to the SNS.

SIGA’s  domestic business is being complemented by a growing international business, with the most recent activity being the decision by the Public Health Agency of Canada to purchase up to approximately $33 million of oral TPOXX within five years.

SIGA’s revenues have increased 446.9% year-over-year to $44.30 million in the third quarter ended September 30, 2020. DBX’s operating profit has increased 4600% from the year-ago value to $32.90 million, while its net income has increased 2116.7% to $32.70 million over the three-month period, yielding an EPS of $0.31.

Analysts expect SIGA’s EPS to rise slightly over the next five years. The stock has gained 43.6% over the past year to close yesterday’s trading session at $6.46.

It’s no surprise that SIGA has an overall rating of A, which equates to Strong Buy in our POWR Ratings system. SIGA has an A grade  for Value and Quality and a B grade for Growth and Momentum. In the 482 stocks of the same industry, it is ranked #1.

Click here to see the additional POWR Ratings for SIGA (Stability and Sentiment).

Want More Great Investing Ideas?

“MUST OWN” Growth Stocks for 2021

4,000 or Bust for S&P 500!

7 Best ETFs for the NEXT Bull Market

5 WINNING Stocks Chart Patterns

 


TAK shares fell $0.03 (-0.17%) in after-hours trading Thursday. Year-to-date, TAK has declined -3.68%, versus a 4.50% rise in the benchmark S&P 500 index during the same period.


About the Author: Rishab Dugar


Rishab is a financial journalist and investment analyst. His investment approach is to focus on quality stocks, trading at low prices, with business models that he readily understands. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
TAKGet RatingGet RatingGet Rating
SIGAGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

2nd Half of 2021 Stock Market Outlook

The stock market (SPY) has continued on a bullish path to start 2021. Yet it is not quite the same glorious bull run we enjoyed from the lows of last year. This market has become more volatile and with less upside potential. However, there is still plenty of money to be made if you look in the right places. That is the very nature of the new presentation I put together. So read on for more info…

:  |  News, Ratings, and Charts

Better Meme Stock: Wendy's or Palantir Technologies?

2021 has been the year of the meme stock. Meme stocks have risen higher and faster than many of the traditional big name high flyers this year. These stocks are being pushed higher by traders on social media. Wendy's Company (WEN) and Palantir Technologies (PLTR) are two stocks that have recently generated a lot of attention, but which is a better buy? Read more to find out.

:  |  News, Ratings, and Charts

Fenway Park and JetBlue Park are now a part of the Applied UV air purifier revolution

Developed by NASA, company's patented disinfection technology will protect baseball players and fans.

:  |  News, Ratings, and Charts

4 ETFs to Buy if Inflation is Transitory

Recently, we've seen the biggest inflation reading since 2008. However, the current consensus is that inflation may be peaking. If this is the case, then the Invesco Dynamic Leisure and Entertainment ETF (PEJ), US Global Jets ETF (JETS), Invesco QQQ Trust (QQQ), and the SPDR S&P Dividend ETF (SDY) are 4 ETFs worth buying. 

:  |  News, Ratings, and Charts

Fenway Park and JetBlue Park are now a part of the Applied UV air purifier revolution

Developed by NASA, company's patented disinfection technology will protect baseball players and fans.

Read More Stories

More Takeda Pharmaceutical Company Limited (TAK) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All TAK News