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MARKETS LIVE BLOG:

STOCKS RISE, LED BY STELLAR ALPHABET, MICROSOFT EARNINGS

Results from 'Magnificent Seven' duo show cloud revenue boosted by strong AI demand

NASH, Allergies and Beauty Stocks: Invest or Not?

Tracey Ryniec
Investors need to pay close attention to Intra-Cellular Therapies (ITCI) stock based on the movements in the options market lately.

  • (0:15) - What Are The NASH stocks?

  • (3:20) - Investing In Impactful Biotech

  • (6:30) - Top Biotech Sectors To Pay Attention Too

  • (11:20) - Millennial Help Boost The Beauty Stock's

  • (16:15) - Episode Roundup: EW, EXAS, AIMT, SIEN, AGN, EOLS

  • Podcast@Zacks.com

 

Welcome to Episode #170 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is going solo to discuss the latest biopharmaceutical updates.

Some of them have trendy names like NASH, but others are often not discussed like treatments for peanut allergies and beauty products like breast implants and Botox.

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Who is close to getting a new product approved?

And what about investing in those in the largest categories, like heart disease?

These are exciting areas for investors, but there’s still risk.

Should You Invest in the Hot Biopharmaceutical Stocks?

1.       Edwards Lifesciences EW just broke out to another new high. This giant in the heart disease category isn’t cheap, with a forward P/E of 36, but it’s expected to see double digit earnings growth in both 2019 and 2020.

2.       Exact Sciences EXAS isn’t expected to see positive earnings in 2019 or 2020 even though sales are soaring for this colon cancer testing company. Sales are expected to be up another 60.2% in 2019 and 47.5% in 2020 though.

3.       Aimmune Therapeutics AIMT develops treatments for life threatening food allergies, including peanut and egg allergies. The BLA for AR101 has been submitted to the FDA for treatment of the peanut allergy in children and adolescents ages 4-17. It was the first company to pass a Phase 3 study for peanuts. It also has a Phase 2 for egg allergies that is ongoing.

4.       Allergan AGN is the king of Botox. Last year, that product generated over $3.5 billion in revenue. And customers are getting younger and younger thanks to the pressure to appear a certain way in selfies on Instagram and Snap. But Botox, and Allergan’s filler product, Juvederm, face competition. Shares are trading at just 9.2x as analysts are wondering where future growth is going to come from.

5.       Evolus EOLS is the Allergan threat. On Feb 1, it got FDA approval for Jeuveau for frown lines. While earnings are expected to be a loss of $3.25 in 2019, they improve to a loss of just $1.38 by 2020. Watch for the possibility of European approval, which would greatly increase its market possibilities.

Questions investors should ask is, how much cash does the company have to ride out the approval process on a new drug or treatment?

And how expensive is the sales and marketing going to be if they do get a product to market?

What else should investors know about investing in the latest medical breakthroughs?

Tune into this week’s podcast to find out.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Allergan plc (AGN) : Free Stock Analysis Report
 
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
 
Exact Sciences Corporation (EXAS) : Free Stock Analysis Report
 
Aimmune Therapeutics, Inc. (AIMT) : Free Stock Analysis Report
 
Evolus, Inc. (EOLS) : Free Stock Analysis Report
 
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Zacks Investment Research