The Zacks Analyst Blog Highlights: ALPS Medical Breakthroughs ETF, Anacor Pharmaceuticals, Dyax, Ultragenyx Pharmaceutical and ImmunoGen

For Immediate Release

Chicago, IL – December 29, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs and stocks recently featured in the blog include ALPS Medical Breakthroughs ETF ( SBI O ) , Anacor Pharmaceuticals (ANAC), Dyax Corp. ( DYA X ) , Ultragenyx Pharmaceutical Inc. ( RAR E ) and ImmunoGen ( IMG N ) .

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Here are highlights from Monday’s Analyst Blog:

Top Performing Stocks from 2015's Top ETF

The biotech corner of the health care space remained a favorite destination for investors, with ALPS Medical Breakthroughs ETF ( SBIO) being crowned as the top ETF of 2015. The fund returned has about 29% this year (read: 5 ETF Outperformers with 20% Plus Gains Year to Date ).

The sector has been on a roller coaster ride this year with the major meltdown seen in September due to concerns over price gouging and increased regulatory scrutiny. But it has emerged from all these concerns, and how! Today, biotech is one of the best performing sectors from a year-to-date look.

This is especially thanks to a merger & acquisition frenzy, cheap valuations after the sell-off, and encouraging industry fundamentals including promising drug launches, cost-cutting efforts, an aging population, ever-increasing demand for new drugs, higher healthcare spending, expansion into emerging markets and Obamacare. Additionally, biotech stocks provide a defensive tilt to the portfolio amid political or economic turmoil.

Coming to the ETF topper, a closer look at its fundamentals is warranted.

SBIO in Focus

The fund targets companies with one or more drugs in Phase II or Phase III FDA clinical trials by tracking the Poliwogg Medical Breakthroughs Index. It is a small cap centric fund that has amassed $169 million in its asset base in a year. The product charges 50 bps in fees per year from investors and trades in a good average daily volume of around 143,000 shares. It holds 94 stocks in its basket with a spread-out exposure across a number of components as none of the securities holds more than 4.61% of assets.

SBIO has a Zacks ETF Rank of 2 or ‘Buy’ rating, suggesting that their outperformance will continue in 2016 as well (read: Biotech ETFs Looking Attractive After Sell-Off ).

Though almost all the stocks in the fund’s portfolio have delivered impressive returns, a few were the real stars, which more than doubled their size. Below, we have highlighted those five best performing stocks in the ETF with their respective positions in the fund’s basket:

Top Performing Stocks of SBIO

Anacor Pharmaceuticals (ANAC): The stock has been flying higher, having surged about 233% in the year-to-date timeframe. The company – focused on creating boron-based drug treatments – is expected to deliver earnings growth of 38.3% for 2015 and 80.3% for 2016 compared to the industry growth of 7.1% and 1.9%, respectively. Revenues are also expected to grow a whopping 332.3% and 57% for this year and the next, respectively, much above the industry average growth forecast. Anacor occupies the third position in the fund’s basket with 3.7% of total assets.

However, the stock currently has a Zacks Rank #4 (Sell) as it failed to beat our earnings expectation in the last quarter that drove the earnings estimates down. It also has a unfavorable Value and Growth Style Score of F and C, respectively.

Dyax Corp. ( DYAX): This stock, focused on the development of rare diseases, takes the second spot in the fund’s portfolio with 4.3% allocation. It has delivered incredible returns of over 168% this year, hitting a 52-week high of $37.80. The massive upside of over 55% came in a single day in early April, following promising results from the phase 1b clinical trial of a rare inflammatory treatment and in November when Shire plc agreed to acquire this small biotech company with a huge premium. Following this merger news, shares of DYAX gained over 22% in November (read: ETFs to Cash in on Merger Monday ).

Currently, the stock has a Zacks Rank #3 (Hold) with both Value and Growth Style Score of F. Though growth for the current year is discouraging with negative earnings growth of 196.3%, revenue is expected to grow 20.6% versus the industry average of 4.1%. Further, earnings growth of 33.1% and revenue growth of 20.8% for the next year is above the industry average.

Ultragenyx Pharmaceutical Inc. ( RARE): It currently has a Zacks Rank #3 with a Value Style Score of D and a Growth Style Score of F. Though the stock has seen negative earnings estimate revisions for this year and the next over the past 60 days with negative earnings growth rates, it got a major boost from the slew of solid trial results for new drugs. The stock has risen about 159.4% this year and accounts for the fifth spot with 3.4% share in SBIO.

Neurocrine Biosciences Inc. : This stock has gained 138.4% this year and accounts for the fourth position in the fund’s basket at 3.6%. Nevertheless, it has witnessed negative earnings estimate revisions for the current year and the next over the past 60 days with uninspiring growth rates (see: all the Healthcare ETFs here ).

ImmunoGen (IMGN ): This stock makes up for less than 1% share in SBIO and is up 124.3% this year. Most of the gains came from the positive trial results for the ovarian cancer drug. Additionally, the company has seen solid earnings estimate revision over the past 60 days from -$1.42 to -$1.36 for the current year (ending June 2016). However, the company has negative earnings and revenue growth projections for the current year. The stock has a Zacks Rank #3 with both Value and Growth Style Score of F.
 

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ALPS-MED BRKTH (SBIO): ETF Research Reports
 
ANACOR PHARMACT (ANAC): Free Stock Analysis Report
 
DYAX CORP (DYAX): Free Stock Analysis Report
 
ULTRAGENYX PHAR (RARE): Free Stock Analysis Report
 
IMMUNOGEN INC (IMGN): Free Stock Analysis Report
 
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