What are the top biotech stocks to watch NOW?
These stocks have been in the news a LOT since 2020.
Biotechs are often smaller developmental companies — they may not even have a product on the market.
Right now, many are riding the vaccine news hype. But you may catch biotech stock moves on cancer and diabetes breakthroughs or even female Viagra (never trade a female Viagra play!).
Then there are new or improved drugs, positive trial results, or even mention of an upcoming announcement.
The global health crisis put biotechs and healthcare companies in the spotlight. Biotech companies star in the show, trying to defeat the mighty virus…
And biotech stocks can benefit when the sector is doing well.
Companies are also working to treat other illnesses and diseases. These stocks can be volatile and risky, so be prepared. But this can be a great sector to watch.
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Table of Contents
- 1 What Does a Biotech Company Do?
- 2 6 Biotech Stocks to Watch in 2021
- 2.1 Biotech Stocks to Watch #1: Moderna Inc. (NASDAQ: MRNA)
- 2.2 Biotech Stocks to Watch #2: Annovis Bio, Inc. (NYSE: ANVS)
- 2.3 Biotech Stocks to Watch #3: BioNTech SE (NASDAQ: BNTX)
- 2.4 Biotech Stocks to Watch #4: BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX)
- 2.5 Biotech Stocks to Watch #5: Cassava Sciences, Inc. (NASDAQ: SAVA)
- 2.6 Biotech Stocks to Watch #6: Translate Bio, Inc. (NASDAQ: TBIO)
- 3 See the Stocks I’m Watching
- 4 Conclusion
- 5 One Platform. One System. Every Tool
What Does a Biotech Company Do?
Before you trade biotech stocks, it’s smart to know what they do…
Biotech companies develop drugs, treatments, therapies, and vaccines for a range of health issues. Again, these stocks became more popular after vaccine development took the spotlight last year.
Biotech stocks have good days and bad days. Drugs and vaccines take a lot of time and money to develop. And all that time and money can go down the drain if the FDA doesn’t give a drug or therapy its stamp of approval.
Traders like these stocks because they can make big, volatile moves on news. That can mean more risk, so you must be ready for the action.
How Biotech Stocks Performed in 2020
Like any sector, it’s not wise to judge the performance of biotechs on how a handful of stocks did. Some biotech stocks were home runs and others were strikeouts.
We can use a few ETFs to help tell the story, though…
The SPDR S&P 500 ETF tracks the performance of the S&P 500 and gives us a decent baseline for comparison.
SPY returned 72% from the March 2020 lows and 15% for the full year.
The SPDR S&P Biotech ETF tracks the biotech sector. XBI outdid SPY, delivering a 122% bounceback from March lows. It returned 49% for the entire year.
Market-mirroring ETFs and indexes often win out, but 2020 proved that hot sectors can crush them. In 2020, biotech was one of those sectors.
6 Biotech Stocks to Watch in 2021
Let’s look at six biotech stocks to watch now.
First, a quick note … Some of these stocks are a bit higher priced.
Here’s my hack: the rule of 10. Just move the decimal point in the price over one place or more … It’s how you can turn a $200 stock into a $20 stock.
I’m not saying that’s appropriate for every stock, but it can help you see the price action more like a lower-priced stock.
There’s also the sympathy play route. Strong action in higher-priced stocks can sometimes power smaller stocks — just by being in the same sector. Use that knowledge as you do your research and build your watchlists.
Biotech Stocks to Watch #1: Moderna Inc. (NASDAQ: MRNA)
Moderna has been an absolute beast in July … It gained 43% and continues to climb after European approval of its vaccine use in children 12 and older.
Kids going back to school plays a huge role in the world fully ‘reopening.’ Moderna will help make that happen.
There are also some calls for booster shots, which would give Moderna even more business…
I’m a little hesitant with vax companies — it seems like the big runs already happened. But we still have virus news, so I think it’s worth watching.
By the way … I called this stock out on this week’s watchlist. And I send that out for no cost to help you start your trading week on solid footing. Don’t miss out on the action … Sign up for the weekly watchlist now!
Biotech Stocks to Watch #2: Annovis Bio, Inc. (NYSE: ANVS)
Annovis Bio has been a rocketship since May when it announced positive results on Alzheimer’s and Parkinson’s treatments. Since then, ANVS has gained over 340%…
This week, ANVS joined fellow pharma companies at the Alzheimer’s Association International Conference to present its current stance on treating the disease.
ANVS is testing a key line of resistance … A good announcement at the conference could be the catalyst for breaking new highs.
This is also a low float stock, giving it an even better chance of making a big run…
Biotech Stocks to Watch #3: BioNTech SE (NASDAQ: BNTX)
Just like Moderna, BioNTech has dominated this year. Its stock is up 31% since the beginning of July…
BioNTech worked with Pfizer to deliver the other popular vaccine to the market. The vaccine’s expected to bring in $26 billion this year with each company taking half.
Booster shots could come into play here as well. If people continue to get sick, vaccine makers will be in play.
BioNTech and Pfizer just made a deal with the U.S. government to deliver another 200 million doses through spring 2022, helping shoot BNTX higher.
BioNTech also announced this week that it will begin work on a malaria vaccine with clinical trials starting by the end of 2022.
Biotech Stocks to Watch #4: BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX)
BCRX has had a big year … It broke away from the penny stock world to end 2020 and has continued charging higher.
The stock has exploded for 135% gains in 2021.
After a short downtrend, BCRX is gapping higher. This stock grew some legs and ran this year.
BCRX consolidated in recent months but is now testing all-time highs…
BioCryst Pharmaceuticals focuses on treating rare diseases and has approved medicines already on the market. It also has treatments in the development pipeline to treat influenza and Yellow Fever.
Biotech Stocks to Watch #5: Cassava Sciences, Inc. (NASDAQ: SAVA)
Cassava Sciences will join Annovis Bio and others this week at the Alzheimer’s Conference in Denver, presenting two new clinical datasets.
The company has both an Alzheimer’s treatment and detector in the works…
SAVA has already had an insane 2021, returning over 190%. A positive presentation in Denver could send it even higher…
Biotech Stocks to Watch #6: Translate Bio, Inc. (NASDAQ: TBIO)
TBIO is coming off of a massive 90% run-up since mid-June, with 14% from the start of this week.
I don’t like to chase the tail of old gainers, but stocks like this can be prime candidates for dip and rip trades.
TBIO is pushing a key level of resistance and will surely face a battle breaking through. Early-day sellers may just provide a lower entry point, though…
Translate Bio uses mRNA to treat diseases. The company has clinical-stage treatments of cystic fibrosis as well as early-stage COVID-19.
See the Stocks I’m Watching
No matter what’s happening in the overall market, there are always stocks that slip through the cracks.
That’s why I try to cast a wide net and watch as many stocks to help YOU catch the action.
Every Sunday, I’ll send you a list of stocks I think are worth watching in the upcoming week.
And I’ll include a detailed analysis of each pick. I also may look back at recent picks to break down recent picks. That’s critical for learning and preparing for future trades.
The XBI has been down in recent months, but that’s not stopping biotech stocks…
In this sector, the right catalyst can supercharge stock runs. That’s great news for prepared traders. But you have to know what to watch … like trial results or FDA approvals.
That’s why keeping an eye on the news is so important. With StocksToTrade and our Breaking News Chat add-on, we do our best to help make that easier for you … See how the latest news can change your trading day. Grab your 14-day trial of STT + BNC today for just $17!
And remember, this is a list of stocks to watch — not trade recommendations. Do your own research and make your plans.
Biotech stocks can come with a lot of fun momentum, but you must be ready for it. That all starts with your watchlist. Get crackin’!
How do you watch and trade biotech stocks? Let me know with a comment below!