There are certain sectors which manage to provide investors with excellent opportunities on a consistent basis. Over the years, plenty of investors have made handsome returns from their stock picks. However, the market for any sector is a dynamic place. Basically, you need to be on the lookout for the next big opportunity. Sounds easy, right?
The biotech sector has consistently brought opportunities quite frequently. But investors need to watch the market closely and then weigh the options. There are just as many risks to consider compared to the potential rewards.
[Free Report] A Breakthrough in Biotech May Put Investors at an Advantage
But if you understand the psychology of the market, you’ll have a better understanding of how to trade it. Here is a look at two biotech stocks that have ended up on watch lists lately.
Moderna (MRNA)
Moderna Inc (MRNA Stock Report) is one of the more interesting companies in the biotech sector. After it had its initial public offering earlier this year, it has generated a lot of interest. Although the company has a market cap of $5.3 billion, Moderna stock has pulled back. The main problem for the company has been the fact that it has still not been able to prove definitely whether its RNA (mRNA) products work or not.
The doubt over the company’s mRNA-4157 product, which is meant as a cancer vaccine, has not helped matters either. In the first six months of the year, Moderna lost as much as $268 million and currently. It has as many as 13 products in development.
[Read More] Biotechnology Stocks To Watch In October
Sarepta Therapeutics (SRPT)
The biotech stock that could well prove to be a good investment is Sarepta Therapeutics Inc (SRPT Stock Report). The biotech firm is involved in producing medicines related to genetic precision and has an excellent line up of products meant for Duchenne muscular dystrophy. However, more importantly, the stock has got buy rating from as many as 18 analysts over the course of the past three months.
Moreover, the target price of $197 indicates that the stock could generate gains of as much as 135%. In August, one of the company’s key products was rejected by the FDA. You can see on the chart the massive drop at that time. Can Sarepta ever recover or is the stock still set to slide further?
[Free Report] A Breakthrough in Biotech May Put Investors at an Advantage
