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.
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.
