As markets reel, biotech stocks are making a strong impression in Investor’s Business Daily’s IBD 50 lineup. Every company, from relative newcomers to Argenx (ARGX) to industrial strongholds such as Eli Lilly (LLY) shares, are added to the list.
While many of these stocks are in or near the buy zone, funds are also loading up on these stocks. Here are their details:
Argenx: Approaching a Buy Point
After a long consolidation, Argenx is approaching a buy point of 550.76, which is also its all-time high, according to IBD MarketSurge. The biotech company produces drugs that treat certain autoimmune diseases.
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In the quarter ended June 30, revenue rose 74 percent to $489.4 million, while earnings of 49 cents per share showed the company had overcome steep losses from the year-ago quarter.
The biotech stock has a Relative Strength Rating of 92 and an adequate Composite Rating of 85. However, its EPS Rating lags behind at 34.
Equities are under accumulation with 37% of the funds outstanding shares. The Artisan Midcap Fund (ARTMX) holds shares of Argenx. Argenx also has an Accumulation/Distribution Rating of A+.
This pharmacist has rhythm
Rhythm Pharmaceuticals (RYTM) has formed a cup with a handle base after rising to an all-time high. The handle offers a lower buy point of 50.22. The relative strength line has risen even as the stock formed the handle.
The pharmaceutical company treats genetic diseases that cause obesity. Although it has suffered losses for the past eight quarters, revenue growth has been steady. In the second quarter, losses improved to 55 cents per share from 82 cents a year earlier, while revenue grew 51% to $29.1 million.
The stock has an accumulation/distribution rating of A-, indicating strong institutional support in recent weeks.
Eli Lilly Stock: High Ratings
Leader in obesity medicines Eli Lilly (LLY) is also not far off its all-time high of 972.53. The stock has yet to reach the right side of a base with its all-time high as a possible buy point.
Eli Lilly stock has an ideal Composite Rating of 99, while its EPS Rating of 93 and Relative Strength Rating of 92 are also impressive. Accelerating earnings in the most recent three quarters and steady revenue growth are points in favor of the leader in the diversified medical stock group.
Funds own 39% of the shares. Eli Lilly shares are also under accumulation with an Accumulation/Distribution Rating of B-.
TG Therapeutics moves towards a buy point
TG Therapeutics (TGTX) remains near a buy point of 22.67 as it hovers above its 50-day moving average. On August 6, the company raised its full-year revenue outlook to $295 million from $280 million at the midpoint after reporting its second-quarter results.
The company treats autoimmune diseases such as relapsing multiple sclerosis. Its Composite Rating is 93, while its Relative Strength Rating of 95 shows it has outperformed most biotech stocks in the Investors’ Business Daily database.
The stock has an accumulation/distribution rating of B+.
Like Eli Lilly, Mirum stock nears record high
Mirum Pharmaceuticals (MIRM) is also near an all-time high of 45.23, similar to Eli Lilly stock. The company has reported steady sales, though profits have eluded it in the past eight quarters.
Mirum expects to continue to incur losses due to the costs of conducting clinical trials, obtaining regulatory approvals and paying licensing fees. But analysts expect losses to narrow sharply amid rising profits to $1.77 per share and 80 cents per share in 2024 and 2025.
Mirum Pharmaceuticals manufactures and markets medicines for the treatment of liver diseases and boasts an excellent Accumulation/Distribution Rating of A+.
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