“A chart of the S&P biotech tracking ETF XBI shows that while the market has been down since last Friday, biotech has held. The XBI specifically broke through a downtrend line and has broken through a $58 resistance level, according to Oppenheimer technician Ari Wald in a CNBC interview.
SEE MORE: Resisting the Temptation of Biotech ETFs
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. However, there are some discounts available in the usually pricey biotech space.
“Erin Gibbs, chief investment officer at S&P Global, believes investors should take the biotech bet from a fundamental standpoint. According to Gibbs, the average upside for stocks in the XBI is 30 percent from current target prices,” reports CNBC.
For more information on the biotech sector, visit our biotechnology category.
SPDR S&P Biotech ETF