2 Top Biotech Stocks To Watch This Week

Are These The Best Biotech Stocks To Buy Now?

Investing in biotech stocks that are combating COVID-19 can be a rewarding venture. Other than the technology sector, investors looking for market-beating performances are also looking at the top biotech stocks in the market. If we look at the iShares Nasdaq Biotechnology ETF (IBB Stock Report), the biotechnology sector has returned nearly 15% year-to-date, far outpacing the S&P 500’s 1.5% gain. Perhaps only the tech sector can match or beat the returns.

Looking for the best biotechnology stocks to buy involves different metrics of assessment like the rest of the market. In many cases, biotech earnings reports aren’t the lightning rod for huge price swings. Instead, these biotech stocks typically tend to ebb and flow on clinical data releases and regulatory approval decisions, which are arguably far more important for gauging biotechnology firms’ developments.

During uncertain times like now, a bull or bear market doesn’t really affect these biotech stocks. Especially biotech companies that are working on COVID-19 programs, be it vaccines, treatments, or even diagnostic tests. As the coronavirus pandemic is not showing any signs of slowing down, this has created more urgency for more effective tools to curb and eliminate the virus as soon as possible. While large-cap biotech companies such as AstraZeneca (AZN Stock Report) or Johnson & Johnson (JNJ Stock Report)  have been doing quite well even before the pandemic, inventors can also take a closer look at emerging biotech stocks with groundbreaking developments. Let’s look at these two biotech stocks to see if they are worth adding to your portfolio.

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Best Biotech Stocks To Buy Right Now [Or Sell]: Sorrento Therapeutics

First, up the list, shares of Sorrento Therapeutics (SRNE Stock Report) soared more than 31% on Tuesday. Sure, there have been plenty of good weeks so far this year. And according to H.C. Wainwright analyst Ram Selvaraju, there’s more upside potential in this stock. The top analyst reiterated a buy rating on SRNE stock and boosted his target price from $24 to $30. That said, his new target price represents a potential 133% increase based on Tuesday’s closing price of $12.84.

Best biotech stocks to buy (SRNE stock)

Many investors rushed to pour their money onto SRNE stock from the potential of a new rapid diagnostic test that the company licensed from Columbia University. The new coronavirus test reportedly detected the COVID-19 in little as 30 minutes using saliva samples rather than unpleasant nasal swabs. The company is marketing the test under the name COVI-TRACE.

Unlike other diagnostic products, this particular test holds all testing materials in a single tube. This eliminates the need for any laboratory equipment. What that means is that the test is mobile. It can be used in various settings, from clinics to homes.

[Read More] Top Video-Streaming Stocks To Watch In August 2020

Best Biotech Stocks To Buy Right Now [Or Sell]: Novavax

Another biotech stock making headlines this week is Novavax (NVAX Stock Report). The shares jumped 8.5% after ‘positive’ early results for the company’s coronavirus vaccine. The increasing need for a safe and effective vaccine could not be more pronounced. There are several top biotech stocks in the Operation Warp Speed program that are also making significant progress. However, Novavax’s vaccine candidate NVX-CoV2373, could make its way from the back of the pack to the front. This is after results from the phase 1 portion of the Phase 1/2 clinical trial. In the study, two doses of NVX-CoV2373 induced neutralizing antibodies in every subject. The company stated that the levels of antibodies “compared favorably to responses from patients with clinically significant COVID-19 disease.”

best biotech stocks (NVAX stock)

Even though the price gains have been both rapid and steep, it’s likely positive trial data will push them even higher. But the shares briefly fell 34% postmarket on Tuesday after reporting encouraging results. This could be because some of the healthy adults in the study experienced side effects including fever, headache and fatigue. Despite the minor side effects, it seems to me like Novavax might be closer to the finish line that it seems. After all, being able to trigger an antibody response is a major step forward.

Generally, as long as trial results are encouraging, the government’s huge investment in Novavax may continue to drive investor optimism. Now the big question is whether at these levels NVAX stock is still a buy. I think the company has great prospects. The company does have a number of candidates in its pipeline besides the COVID-19 vaccine. Yet, I suspect the stock may be quite volatile in the near term as it will continue to react to vaccine news. If you can stomach the movements, would you consider buying NVAX stock?

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