- This topic has 3 replies, 3 voices, and was last updated 5 years, 2 months ago by MoneyNeverSleeps.
- 30 Dec '17 at 10:26 pm #14208ThePitBossParticipant
[article]469[/article]31 Dec '17 at 4:20 am #14209ThePitBossParticipant
Heading into 2018 $XBI Weekly chart via @astruzynski
Reversing Lower from descending blue trendline. And faded from highs after inside-inside week break31 Dec '17 at 11:16 pm #14224TradersComKeymaster
Biotechs had the power – 8 out of 10 in a year where the markets hit record highs – ROKU sneaking in as an IPO is impressive.05 Jan '18 at 9:52 pm #14317MoneyNeverSleepsParticipant
[b]Merrill Lynch Comments On Biotechs for 2018
The biotech stocks sported a comeback in 2017 out of the penalty box in 2016 with the Nasdaq Biotechnology Index (NBI) up 21%. Despite giving back part of its gain (peaked at 29%), NBI managed to outperform S&P500 (up 19%) during 2017. Coming into 2018, most investors find biotech less exciting than FAANG in the tech world.
Long considered a hyper growth sector with high risk/high reward, biotech is experiencing growing pains. With aging product line-up, fewer blockbuster launches, large revenue bases and thinning pipeline, the large cap biotech companies increasingly look like their major pharma peers. As a result, investors are penalizing large cap biotech with lower P/E multiples than the major pharma group. Admittedly slower growth is a function of much larger revenue base and biotech stock performance is a victim of its own success with 8 large caps in S&P500 index.
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