Rare are the occasions that biotechnology stocks and exchange traded funds are seen as offering value. In fact, the sector historically trades at multiples that are elevated relative to broader benchmarks, but in a year of struggles for biotechnology names, some analysts see value with some big-name biotech stocks.
SEE MORE: Resisting the Temptation of Biotech ETFs
IBB, which holds nearly 190 stocks and is a cap-weighted ETF, has a price-to-earnings ratio of just over 21 and a price-to-book ratio of 4.92. The ETF’s three-year standard deviation is just over 25 percent.
“What IBB does in the next few weeks — can it breakout? — should tell us a good deal about this leader. If it continues higher, it will send a positive price message to the risk-on trade,” according to Investing.com.
For more information on the biotech sector, visit our biotechnology category.
iShares Nasdaq Biotechnology ETF
