Top Biotech Stocks for December 2018
The markets continue to be highly volatile in the U.S. and globally, and across many different sectors. Despite this pervading systematic risk, one key area of the market that has held up pretty well this year has been healthcare. We talked about major booming healthcare stocks a few weeks ago. Now it’s time for our top biotech stocks for December 2018.
Unlike the major healthcare stocks that have been seeing substantial gains this year, these biotech stocks are much smaller companies. And chances are, you probably haven’t heard of most or any of them. That said, the gains seen on these much lesser-known biotechs have dwarfed the giants in healthcare. While many of the major healthcare companies have gained double-digit percentages this year, our biotech picks are all in the triple digits.
Is trading the smaller biotechs a riskier proposition than investing in the behemoth pharmaceutical and healthcare insurance companies? We would say yes, definitely. Many U.S. biotechs are only one or perhaps two FDA rejections away from insolvency. At the same time, though, any FDA approval(s) could prompt a biotech stock to shoot through the roof. And you’d be hard-pressed to see gains in the triple digits for blue-chip healthcare stocks.
The Winning Biotechs
So without any further ado, below are our top picks for high-performing and highly promising biotech stocks based on year-to-date performance combined with somewhat lesser factors of average trading volume, liquidity, and market capitalization.
- FATE: Fate Therapeutics, Inc.
- CDXS: Codexis, Inc.
- ATRA: Atara Biotherapeutics, Inc.
- NSTG: NanoString Technologies, Inc.
- RARX: Ra Pharmaceuticals, Inc.
Of course, trading biotechs is not for everyone and certainly not for the faint-hearted. But if you can stomach the roller-coaster rides and are able to pick stocks with solid pipelines that pan out, you might just be a good biotech trader.
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Senior Technical Analyst at The Technicals
As a momentum stock trader, Luke focuses mostly on strong market moves. Luke has been trading the markets since the early 2000s, but still gets excited by big movers. Whether a surging large-cap tech company or meteoric penny stock, Luke tracks and trades winners. A technical analysis purist, Luke authors many of our Top Stocks & ETFs reports. Contact Luke