Genomics, the study of a person’s genes, is a medical industry with a bright future. The global genomics market size was estimated to be worth $17.2 billion in 2019 and is estimated to reach $31.1 billion by 2027.
Attempt to sort through the litany of genomics stocks on your own and you will be buried under an information avalanche. Instead, it is better to narrow your focus on a select few genomics companies handpicked by the experts.
Here is a quick look at three budding genomics stocks with fantastic potential: Regeneron Pharmaceuticals (REGN), CRISPR Therapeutics (CRSP) and Invitae Corporation (NVTA).
Regeneron Pharmaceuticals (REGN)
REGN’s focus is on the development of treatments for serious medical conditions and bringing those solutions to the marketplace. REGN’s portfolio contains about half a dozen marketed drugs including Dupixent for asthma, Eylea for eye diseases and Kevzara for active rheumatoid arthritis. It is interesting to note Eylea was co-developed with the assistance of Bayer’s HealthCare team.
Check out REGN’s POWR Ratings and you will find the stock has “A” grades in the Trade Grade and Peer Grade components. REGN is ranked 54th out of nearly 400 publicly traded companies in the Biotech space. The top analysts insist REGN is underpriced, setting an average price target of $668.21 for the stock, meaning it has the potential to increase by 14%.
Add in the fact that REGN is working on a combination of monoclonal antibodies to treat coronavirus and you have all the more reason to add this stock to your portfolio. It certainly helps that President Trump is constantly talking up REGN’s work to battle the coronavirus. Look for REGN to move back toward $658 or even higher in 2021.
CRISPR Therapeutics (CRSP)
This gene editing company is developing therapies with its CRISPR/Cas9 platform for genetics editing. CRSP’s team is hard at work creating therapies to treat diabetes, cancer and several other diseases. CRSP does not have a marketed drug yet it has a pipeline candidate dubbed CTX001 that will likely be used for the treatment of sickle cell disease and transfusion-dependent beta thalassemia.
The POWR Ratings reveal CRSP has “A” grades in the Peer Grade, Buy & Hold Grade and Trade Grade components. CRSP is ranked 61st out of 384 Biotech stocks.
If you were to fast forward a decade into the future, you would like find gene editing with CRISPR technology is commonplace. In fact, a recent Market Insights study reveals the worldwide gene therapy market will surpass $18 billion within seven years. CRSP will rake in a considerable percentage of this cash as it makes even more headway with its CRISPR gene editing platform.
Invitae Corporation (NVTA)
NVTA specializes in genetics diagnostics for pancreatic cancer, colon cancer, breast cancer and other hereditary disorders. NVTA’s operations are centered in the United States yet the company also conducts business in Israel and in other parts of the globe. NVTA has an “A” Trade Grade in the POWR Rating components. The stock is ranked 17th of 58 in the Medical – Diagnostics/Research space.
NVTA’s medical genetics testing is likely to prove even more popular and necessary as we progress into a future in which the analysis of genetics becomes central to medical progress. Look for NVTA to continue rolling out new and improved genetics tests for surprisingly little money. The company’s in vitro diagnostics testing technology will undoubtedly be a revenue driver in the years ahead.
Once NVTA reaches profitability, the stock will pop. The only question is when that will happen. Buy NVTA today in anticipation of a prolonged bull run and you should be more than happy with the return.
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REGN shares were trading at $577.54 per share on Tuesday afternoon, down $5.60 (-0.96%). Year-to-date, REGN has gained 53.81%, versus a 8.95% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...