As the markets teeter, biotech stocks are making a strong showing in Investor’s Business Daily’s IBD 50 lineup these days. Every company, from relative newcomers like Argenx (ARGX) to industry stalwarts such as Eli Lilly (LLY) stock, are making the list.
While many of these are in or near buy zones, funds also are loading up on these stocks. Here are their particulars:
Argenx: Nearing A Buy Point
After a long consolidation, Argenx is approaching a buy point of 550.76 that is also its all-time high, according to IBD MarketSurge. The biotech company provides drugs that treat certain autoimmune disorders.
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For the quarter ended June 30, sales rose 74% to $489.4 million while earnings of 49 cents per share showed the company had turned around from steep losses in the year-earlier quarter.
The biotech stock has a Relative Strength Rating of 92 and an adequate Composite Rating of 85. Its EPS Rating lags at 34 though.
Shares are under accumulation with 37% of outstanding shares in funds. The Artisan Midcap Fund (ARTMX) holds shares of Argenx. Argenx also holds an Accumulation/Distribution Rating of A+.
This Drugmaker Has Rhythm
Rhythm Pharmaceuticals (RYTM) has formed a cup with 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. Though it has been incurring losses over the past eight quarters, sales growth has been steady. In the second quarter, losses improved to 55 cents per share from 82 cents in the prior year while sales grew 51% to $29.1 million.
The stock holds an Accumulation/Distribution Rating of A-, indicating strong institutional support in recent weeks.
Eli Lilly Stock: High Ratings
Obesity drugs leader Eli Lilly (LLY) is also not far from its all-time high of 972.53. Shares are yet to build the right side of a base with its all time high as a possible buy point.
Eli Lilly stock boasts an ideal Composite Rating of 99 while the EPS Rating of 93 and Relative Strength Rating of 92 are also impressive. Accelerating earnings in the three most recent quarters and steady sales growth are points in favor of the leader in the diversified medical stocks group.
Funds own 39% of the stock. Eli Lilly stock is also under accumulation with an Accumulation/Distribution Rating of B-.
TG Therapeutics Moves Toward A Buy Point
TG Therapeutics (TGTX) remains near a buy point of 22.67 as it hovers above the 50-day moving average. On Aug. 6, the company raised its full-year sales outlook to $295 million from $280 million at the midpoint after reporting its second-quarter results.
The company treats autoimmune disorders such as relapsing multiple sclerosis. The Composite Rating is 93 while its Relative Strength Rating of 95 shows it has outperformed the majority of biotech stocks in the Investors’ Business Daily database.
The stock holds an Accumulation/Distribution Rating of B+.
Like Eli Lilly, Mirum Stock Near An All-Time High
Mirum Pharmaceuticals (MIRM) is also close to an all-time high of 45.23, similar to Eli Lilly stock. The company has reported steady sales though profits have evaded it in the recent eight quarters.
Mirum expects to continue to incur losses due to the cost of running clinical trials, getting approvals and paying license fees. But analysts expect losses to fall off sharply amid growing profits to $1.77 per share and 80 cents per share in 2024 and 2025.
Mirum Pharmaceuticals makes and sells drugs to treat liver disorders and boasts a top-notch Accumulation/Distribution Rating of A+.
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