Wednesday, March 14, 2018

Top Biotech Stocks For 2018

As this article pertains mainly to Advaxis, Inc. (ADXS), I think it's very important to state from the outset that, unlike most of the stocks that I write and have written about, I do own shares in this company, and I likely will acquire more in the near future. I don't intend that statement as an endorsement of ADXS, and it is not because I think other companies are necessarily a worse investment. Please take this potential for bias into account as you read this article. Thank you.
Introduction
ADXS is a developmental-stage biotech focused on the development of attenuated listeria-based immunotherapy for the treatment of solid tumors. Most notably, the company is in late-stage clinical development for cervical cancer.
In 2017, ADXS has had a lot of ups and downs. Clinically, it has yet to have any sort of bad news, in stark contrast with, say, 2015, when the FDA placed a clinical hold on its trials due to potential safety concerns (later deemed unfounded, and the trials restarted). But on the business end of things, ADXS has had some challenges.

Top Biotech Stocks For 2018: Lexicon Pharmaceuticals, Inc.(LXRX)

Advisors' Opinion:
  • [By Paul Ausick]Lexicon Pharmaceuticals Inc. (NASDAQ: LXRX) dropped about 12.3% Wednesday to post a new 52-week low of $12.93 after closing at $14.74 on Tuesday. The stock’s 52-week high is $19.62. Volume of around 2.8 million was nearly 5 times the daily average. The company had no specific news.

Top Biotech Stocks For 2018: Globe Specialty Metals Inc.(GSM)

Advisors' Opinion:
  • [By Lisa Levin]Shares of Ferroglobe PLC (NASDAQ: GSM) got a boost, shooting up 10 percent to $10.17 after the company posted a narrower-than-expected Q1 loss.
    Puma Biotechnology Inc (NASDAQ: PBYI) shares were also up, gaining 37 percent to $51.75 as briefing documents for Wednesday Advisory Committee meeting are published to the FDA website. The documents showed that neratinib performed better than Roche's trastuzumab in I-SPY2 trial, particularly in subgroup of patients that were HRc negative. The briefing docs also showed that study 3004 met prespecified primary efficacy endpoint.
  • [By Dan Caplinger]But there are still plenty of factors that are preventing stocks overall from mounting stronger gains, including nervousness about geopolitical issues as well as weaker parts of the global economy. Nevertheless, some stocks posted strong gains, and Puma Biotechnology (NASDAQ:PBYI), Applied Optoelectronics (NASDAQ:AAOI), and Ferroglobe (NASDAQ:GSM) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.聽 聽

Top Biotech Stocks For 2018: EPR Properties(EPR)

Advisors' Opinion:
  • [By Laurie Kulikowski]Net operating cash flow has increased to $64.42 million or 19.61% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.39%.
    The gross profit margin for EPR PROPERTIES is currently very high, coming in at 73.12%. Regardless of EPR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EPR's net profit margin of 46.18% significantly outperformed against the industry.
  • [By Laurie Kulikowski]We rate EPR PROPERTIES as a Buy with a ratings score of B. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. 
  • [By Laurie Kulikowski]The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 17.5% when compared to the same quarter one year prior, going from $42.71 million to $50.20 million.
  • [By Laurie Kulikowski]EPR's investment pipeline should drive about 6-7% earnings growth in 2016, and historically the company's dividend growth has roughly equated to earnings growth. Starting with an above-average 6.5% yield, we find this compelling for income-oriented investors.