There are stocks listed on the Nasdaq which in 2019 recorded amazing performances.
We are talking about Axsome Therapeutics with + 4.577%, Kodiac Sciences Inc. + 1.006% or Arrowhead Pharmaceuticals Inc. + 443.80%. There have also been cases of sharp falls, such as Anaptys Bio -73%, Solid Bioscences -83.54% or REstorBio Inc. -85%.
2020 forecasts for the stock index of biotechnology
The index rose by about 27.4% in 2019 and for the next year further increases are expected with a minimum area between 3,150 / 3,650 and a maximum area between 4,125 / 4,390. The trend and price projection will remain unchanged until weekly closings in excess of 3,383.
What are the biotechnology stocks that could fly on the Nasdaq?
We have chosen 3 companies which are currently undervalued compared to the fair value of approximately 90%.
They are Alexion Pharmaceutical (NASDAQ: ALXN), Amarin Corporation PLC (NASDAQ: AMRN) and Collegium Pharamaceutical (NASDAQ: COLL).
3 stocks to bet on upward
Alexion Pharmaceutical
The stock closed last trading week at $ 108.55. Since the beginning of the year it has risen by 11.67%.
Annual earnings growth is expected to exceed 9.7%. In the last year the growth has been 863.5%.
Based on the financial statements of the last few years, the fair value estimates are at about 194 $ with a current undervaluation of around 90%.
Trading signal
Buy on the market with stops at $ 92.55 and keep for long term and up to fair value.
Amarin Corporation PLC
The stock closed last trading week at $ 21.55. Since the beginning of the year it has risen by 62.76%.
Annual earnings growth is expected to exceed 70%.
Based on the financial statements of recent years, fair value estimates lead to a current underestimation of around 90%.
Trading signal
Buy on the market with stops at $ 16.69 and keep for long term and up to $ 40 and above.
Collegium Pharamaceutical
The stock closed last week’s trading at $ 20.97. Since the beginning of the year it has risen by 26.55%.
Annual earnings growth is expected to exceed 75%.
Based on the financial statements of recent years, fair value estimates lead to a current underestimation of around 90%.
Trading signal
Buy on the market with stops at $ 16.69 and keep for long term and up to $ 50 and above.
Conclusions
Recommending due caution as the sector is subject to strong volatility which could also lead to heavy capital losses, we believe that these 3 companies will be biotechnological equities that could fly to the NASDAQ during the year 2020.