Despite the market’s hot year-to-date run, there is no shortage of affordable stocks that also have impressive growth profiles. In the biotech scene, many companies can take advantage of a technological edge to improve various aspects of health and medicine. From genetic medicine to less-invasive disease diagnosis, this piece will review three Strong-Buy stocks — ZTS, EXAS, and AZN — that I view as among the most investable in the often-choked biopharma scene.
Although individual biotech and biopharma stocks may have hit-or-miss reputations (either a drug in the pipeline passes late-stage clinical trials or it doesn’t), I think the following well-run companies have distinct advantages in their corner of the biopharma scene that can to help smooth out the bumps that are expected in investing in biotech innovators.
So, let’s check with the TipRanks Comparison Tool below to evaluate three amazing (but not too expensive) biotech plays that currently have the hearts of many Wall Street analysts.
With many innovative biotech companies investing aggressively to deliver the next big blockbuster or pill, there is a lot on the line as companies race to win that first patent. In this type of winner-take-all arena, shares of any fast-moving biotech are bound to hit waters when clinical trial updates hit the headlines. That said, when it comes to pet and livestock health, competition may not be so fierce. Indeed, Zoetis is a rare breed. It’s a big-cap American pet pure-play.
Of course, ZTS stock can still be subject to wild swings if a promising pipeline deal fails tests. But as a market leader with a vast pipeline and some of the best pet talent in the world, the company’s consistent market positioning is reason enough to stick with the name through the ups and downs. At this point, I share analysts’ optimism as the company looks to continue building its pipeline while continuing to cash in on its new big hits.
Indeed, Zoetis is top dog with an impressive track record of highly successful new product launches. Of late, arthritis drugs, such as Librela and Solensia for dogs and cats, respectively, have been impressive growth drivers for the company. In the last quarter, such OA drugs played a big role in propelling 13% in international sales growth in the companion animal products.
Undoubtedly, dogs and cats are like members of the family in many households. Whenever there is a treatment to relieve the pain of osteoarthritis, you can bet that many pet owners will be more than willing to pay for the medication as they would if they were treating their own ailments.
At 32.6 times forward price-to-earnings, ZTS is much cheaper than the specialty and generic drug makers’ industry average of 41.3 times.
What Is the Price Target for ZTS Stock?
ZTS stock is a Strong Buy, according to analysts, with seven unanimous Buys assigned in the past three months. The average ZTS stock price target of $226.14 implies a 35.3% upside potential.
Exact Sciences stands out as one of the most interesting innovators in the corner of cancer diagnosis. Undoubtedly, traditional methods of cancer screening (think colonoscopies for colorectal cancer screening) can be quite invasive and prevent many from getting them in the first place. Not to mention, they may rack up more expensive bills. As Exact Sciences continues to disrupt the cancer screening market with impressive new innovations, I find it hard not to be bullish.
No doubt, if the company hadn’t been such an innovative disruptor, it probably wouldn’t have a place in more than one of Cathie Wood’s ARK Invest funds. The company’s flagship product Cologuard hit record delivery numbers last year, helping the firm clock in more than four million in tests. Going forward, I expect such numbers could remain hot as more people become aware of the less invasive screening tool through the company’s marketing campaign.
At the end of March, EXAS shares rose as promising data for its esophageal test Oncoguard was revealed to the public. As the company continues to bet big on new trials, it will likely only be a matter of time before the stock, which is still down 53% from its high, lifts itself off the tarmac. Exakta may not be a huge company, with its $13 billion market cap, but it’s a leader in cancer screening and diagnostics, and it’s looking to build on that lead while keeping its foot on the R&D gas.
What Is the Price Target for EXAS Shares?
EXAS stock is a Strong Buy, according to analysts, with 14 unanimous Buys assigned in the past three months. The average EXAS stock price target of $92.17 implies a 24.1% upside potential.
AstraZeneca shares have been flat for about two years now, and the stock is down just over 10% from its peak. With sales of vaccines against COVID-19, the company could certainly use a successful new product to help bolster growth. Despite declining demand for the business from COVID-19, AstraZeneca still managed to pull out 6% sales growth in 2023. With robust oncology and rare disease treatment, I think analysts are right to remain bullish on the company as the stock picks up. a little long breath.
Specifically, the company’s oncology pipeline shows great promise. Just last week, it gained approval for Enhertu to be used in a special first-of-its-kind type of therapy. And earlier this year, the company received the green light for Tagrisso, a product to be used alongside chemotherapy for specific forms of lung cancer.
At just 16 times forward price-to-earnings, AZN stock certainly stands out as the cheapest play of this trio.
What Is the Price Target for AZN Share?
AZN stock is a Strong Buy, according to analysts, with six Buys and two Holds assigned in the last three months. The average AZN share price target of $81.95 implies 19.8% upside potential.
The Takeaway
These three firms have some pretty compelling (and unique) innovations under the hood that may just be able to drive the kind of growth that we, as investors, desire. Of the trio, analysts seem to see the best upside for ZTS stock in the coming year.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.