Leerink’s Geoffrey Porges “writes that he expects most of the companies in his large-cap biotech coverage will ‘report surprisingly strong first-quarter results, with most reporting significant beats compared to consensus,’ thanks to currency, pricing, inventories, and underlying demand for products,” according to Barron’s.
Biotechnology historically trades at multiples that are elevated relative to broader benchmarks, but after last year’s of struggles for biotechnology names, some analysts see value with some big-name biotech stocks.
ETF traders who are betting big on the biotechnology sector rebound have also utilized leveraged long options including the Direxion Daily S&P Biotech Bull Shares (NYSEArca: LABU), which takes the 3x or 300% daily performance of the S&P Biotechnology Select Industry Index.
For more information on the biotech sector, visit our biotechnology category.