One of the most popular and well-known names in the biotech world is definitely Biogen
). This large cap stock has been a staple of investor portfolios in the biotechnology space for some time, while it is also one of the behemoths of the sector, closing in on $100 billion in market cap.
BIIB might be due for a breather after such a nice run, at least in the near term, as the company has lagged behind its peers as of late. In fact, BIIB has underperformed the S&P 500 in the past three months while it has easily underperformed broad biotechnology benchmarks as well.
There is some reason to believe that this trend can continue in the near term, especially if you look to recent earnings estimate revisions. Here, they have been quite unfavorable for BIIB and the stock has been floating between Zacks Rank #3 and Zacks Rank #4 territory as of late. In light of this, investors may want to consider some other choices in the biotech world and we have highlighted a few interesting ones below which could make for some better picks in the near term while BIIB regains its momentum:
Headquartered in Hayward, California, Anthera is focused on developing and commercializing products the treat serious illnesses, including cardiovascular and autoimmune diseases. The company is a solid option for investment in the biopharmaceutical industry for several reasons, starting with the company being a Zacks Rank #2 (Buy).
Anthera also has an A for both its Growth and Momentum Style Scores. Over the past 52 weeks the company has seen a positive price change of 128.32%, with a 34.14% positive price change just in the last 4 weeks.
In regards to EPS estimates Anthera has several positive signs. For the current year the company has a year over year EPS growth estimate of 18.38%. Analyst estimate revisions have also been positive, with 2 analysts raising their estimates in the last 60 days for the current year, along with 2 analysts raising their estimates for next year as well. No analysts have lowered their estimates for the current year or the next year either.
The company also has seen success in not only being able to reach analysts’ earnings estimates, but also in positively beating those estimates. Over the last four quarters the company has seen a favorable average positive surprise of 14.98%, with the first quarter of 2015 having a surprise of 9.68%.
Cambrex Corp. is in the business of manufacturing and marketing a broad line of specialty chemicals and commodity chemical intermediates, while also manufacturing chemicals to customer specifications. The company has 5 product categories: pharmaceutical bulk actives, pharmaceutical intermediates, organic intermediates, performance enhancers, and polymer systems.
The company is one that investors should be looking into for a multitude of reasons. Cambrex may be especially intriguing for growth investors as it has an A for its Growth Style Score from Zacks, thanks in part to historical EPS growth that was nearly double the industry average, and then projected EPS growth that is roughly four times the average.
Cambrex has an impressive projected sales growth rate of 15%, along with an extremely solid net margin of 16.69%. The company’s return on equity is also nice, coming in at 19.03%, along with current cash flow growth of 25.88%.
In regards to the company’s EPS estimates, it has a year over year growth estimate of 27.87% for the current year, with growth continuing next year 2016, as the company has a year over year growth estimate of 33.33%.
Also, Cambrex is no stranger to beating earnings predictions, as the company has seen an average surprise of 28.01% with its reported earnings. The first quarter of 2015 ending in March had an especially large beat on estimates at 50%.
With its strong growth numbers, and consistency in beating analyst estimates, Cambrex Corp.’s stock clearly deserves attention from investors as it holds the potential to be a valuable piece of an investment portfolio moving forward.
Osiris Therapeutics is a leading stem cell therapeutic company focused on developing and marketing products to treat medical conditions in the inflammatory, orthopedic and cardiovascular areas. The company is fully integrated, having developed capabilities in research, development, manufacturing, marketing, and distribution of stem cell products. The company is a Zacks Rank #2 (Buy) and has several positive indicators that makes it worth investor attention.
The company has two solid style scores, currently holding a B for growth and an A for momentum, with both scores being backed by solid numbers. In terms of growth, the company has projected sales growth of 52% in addition to a solid sales to assets ratio of .74.
In terms of momentum, the stock has seen a 52 week price change of 13.22%, in addition to a 12 week price change of 15.25%, and a 4 week price change of 2.55%. This shows a positive trend for the stock’s price, a trend that has the chance to continue moving forward, hence the high momentum score.
In regards to the company’s earnings estimates, OSIR is poised to have major EPS growth. Osiris has an astonishing year over year EPS growth estimate of 4,150% for the current year, as well as a solid estimate of 59.26% for next year 2016.
With its high Zacks Rank, solid style scores and positive projections for EPS growth Osiris is a stock in the biopharmaceutical industry that warrants attention from investors. The stock has the potential to be very successful in the future and may be just the stock that a balanced portfolio needs.
The biopharmaceutical industry is one that spikes interest from investors, as it is an industry that continues to grow as medicine and medical devices are ever-evolving and advancing. While Biogen Pharmaceuticals has its value in a portfolio, the three above stocks should be considered for portfolio addition as they have the potential to bring a great deal of success to investors due to a multitude of indicators from which predictions can be made.
By looking at all three stocks’ potential for growth, their history of beating earnings, and analyst agreement, investors can see why these stocks have high potential and warrant attention moving forward.
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