In February 2024, Wall Street analysts have identified three biotech stocks with Strong Buy ratings that investors should consider. Biotech companies are known for leading innovations in healthcare, constantly driving breakthroughs and improving current treatments by reinvesting earnings into research. While these stocks may carry some risk due to their unproven earnings, they also offer significant growth potential.
Alkermes (NASDAQ: ALKS) focuses on developing pharmaceutical products in neuroscience and oncology, showing over a 10% increase in stock value over the past year. With a promising Q4 growth and plans to reduce expenses in 2024 through the separation of its oncology business, Alkermes has initiated a share buyback program worth up to $400 million. The company’s forward price-to-sales ratio suggests it may be undervalued compared to competitors.
Fortrea Holdings (NASDAQ: FTRE) is a global contract research organization specializing in biopharmaceutical products and medical devices. Analysts estimate the stock will trade within a one-year range of $29.00 to $40.00, showcasing strong fundamentals and positive growth prospects. Despite previous financial concerns, Fortrea Holdings has shown signs of improvement, positioning itself as a compelling biotech investment.
Arcturus Therapeutics Holdings (NASDAQ: ARCT) is a late-stage clinical mRNA medicine and vaccine company, focusing on treatments for rare liver and respiratory diseases. Analysts predict the stock will trade within a range of $18.00 to $140.00, with an average of $65.25, indicating substantial growth potential. With exciting collaborations in cystic fibrosis and COVID-19 treatments, Arcturus Therapeutics is set to expand its market presence.
Overall, these three biotech stocks present compelling investment opportunities with strong buy ratings from Wall Street analysts. Each company showcases unique strengths and growth prospects, making them worth considering for investors looking to capitalize on the potential of the biotech sector in 2024.
