The iShares Nasdaq Biotechnology ETF (NASDAQGM: IBB), the largest biotech exchange traded fund by assets, tumbled alongside the broader market in February. In fact, IBB’s February loss surpassed those of the S&P 500 and diversified healthcare ETFs.

There are supporters of the biotech space. Healthcare stocks are also showing attractive valuations relative to other defensive sectors, which are richly valued. 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.

“There are several reasons as to why the sector took a breather. Valuations were part of it: Biotech stocks had such a good run for so long that valuations were stretched and some investors started taking profits. But two things had an even bigger impact on prices: politics and cycles,” according to Morningstar.

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.

IBB tracks the Nasdaq Biotechnology Index and holds nearly 160 stocks. Biogen Inc. (NASDAQ: BIIB), Amgen Inc, (NASDAQ: AMGN), Gilead Sciences Corp. (NASDAQ: GILD) and Celegene Inc. (NASDAQ: CELG) combine for a significant percentage of the fund’s weight. Those are four of the largest biotechnology companies in the U.S.

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