Biotech companies develop therapies for diseases that were previously incurable. These companies generally witness considerable stock price growth when they successfully develop a drug, making them an appealing option for investors. However, biotech stocks carry several risks, as the commercialization of a drug depends on the success of clinical trials and regulatory approvals.
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To help identify the best biotech stocks for your portfolio, we have leveraged the TipRanks’ Stock Screener tool. These stocks have received a Strong Buy rating from analysts. Further, the average analysts’ price targets reflect a solid upside potential of more than 20%.
Here are five such stocks for investors to consider.
- Amylyx Pharmaceuticals (NASDAQ:AMLX) – AMLX is a biopharmaceutical company focused on developing treatments for neurodegenerative diseases. Analysts currently see an upside potential of 80.7% in the stock. Last week, two analysts reiterated a Buy rating on the stock.
- Exelixis (NASDAQ:EXEL) – This biotechnology company is focused on developing innovative therapies for cancer treatment. The stock’s price forecast of $26.76 implies 20.3% upside potential. One analyst assigned a Buy rating to EXEL stock last week.
- Jazz Pharmaceuticals (NASDAQ:JAZZ) – Jazz specializes in the development and commercialization of innovative therapies for sleep and neurological disorders. The stock has an upside potential of 54.7%, according to analysts, and has received 11 Buy ratings in the past week.
- Intellia Therapeutics (NASDAQ:NTLA) – This company is engaged in the development of CRISPR/Cas9 genome editing therapies to treat genetic diseases. NTLA stock’s average price target implies an upside potential of 84.5%. Last week, two analysts rated the stock a Buy.
- Axsome Therapeutics (NASDAQ:AXSM) – Axsome Therapeutics is a biopharmaceutical company focused on developing novel therapies for disorders of the central nervous system. The stock has an average price target of $119.69, which implies 45.2% upside potential from current levels. The stock received two Buy ratings from analysts in the last week.
