Market observers are growing more bullish on the sector as a Republican-led Congress and administration could enact reforms to free cash held overseas for tax reason by large U.S. pharmaceutical companies, which could pave the way for increased acquisitions in the sector.

While the sector has gotten a hair cut, for long-term investors who want to find above average growth opportunity for a discounted price, today is a good day to invest. The Price/Prospective Earnings per Morningstar is lower than the general market yet the long-term earnings and sales growth surpasses the S&P 500 as measured by the popular SPDR S&P 500 ETF (SPY),” according to a Seeking Alpha analysis of biotech valuations.

“Right now, biotechnology stocks are going through a serious attempt to break out from their 20-month consolidation period. If the 300 level in IBB holds for at least 5 consecutive days, biotech will go higher in the coming weeks and months,” according to ETF Daily News.

For more information on the biotech sector, visit our biotechnology category.