7 Breakthrough Biotech Stocks for a Boost in Your Investment Portfolio
By 2033, the biotech sector could reach a $521.6 billion market size, with a CAGR of 8.9%.
Biotech stocks thrive on the fundamental importance of health. While sectors like tech, cryptocurrencies, and precious metals have their appeal, nothing is more essential than health. You can't enjoy your work's rewards if you’re not healthy. This makes the healthcare sector consistently strong.
Although not every company within biotech will succeed, competing in a growing industry is beneficial. Health is always a priority, giving biotech stocks a strong foundation.
Quantitatively, the sector is huge and expanding. Grand View Research notes the global biotech market reached $1.55 trillion and could be worth $3.88 trillion by 2030, implying a CAGR of 13.96%.
Bristol-Myers Squibb (BMY)
Bristol-Myers Squibb is a top player in the biotech field, especially in oncology. They offer various cancer treatments, including Opdivo for skin cancer. The global oncology market was valued at $222.36 billion and could grow to $521.6 billion by 2033, with a CAGR of 8.9%.
Wall Street projects BMY's 2024 sales at $46.08 billion, a 9.6% increase from last year. Despite analysts' “hold” rating, the average target price for BMY stock is $52.46, suggesting a 27% potential upside.
Neurocrine Biosciences (NBIX)
Neurocrine Biosciences focuses on neurological and endocrine disorders. The global neurological disorder therapeutics market may hit $66.4 billion this year and $103.8 billion by 2033, with a CAGR of 5.1%.
For Neurocrine, analysts expect 2024 earnings per share (EPS) to rise nearly 65% to $4.07 and sales to grow nearly 18% to $2.22 billion.
Amgen (AMGN)
Amgen, one of the top-tier biotech stocks with a market cap over $160 billion, specializes in immunology therapies. The global immunology market was valued at $98.22 billion last year and could reach $263.22 billion by 2033, implying a CAGR of 10.36%.
Analysts project Amgen’s 2024 EPS at $19.46, an 11.7% increase, with sales potentially hitting $33 billion, up 25%.
Gilead Sciences (GILD)
Gilead Sciences is known for its innovations in infectious diseases. The global infectious disease therapeutics market reached $67.1 billion in 2022 and could grow at a CAGR of 7.1% to $115.2 billion by 2030.
Gilead's 2024 sales are projected at $27.59 billion, up 8.9%. Despite variable earnings, GILD offers a forward dividend yield of 4.73%, making it an attractive investment for passive income seekers.
Novartis (NVS)
Novartis, based in Switzerland, has a market cap of $230.22 billion and is well-known for cardiovascular treatments. The global cardiovascular drugs market is worth around $138 billion and could reach $200.9 billion by 2032, with a CAGR of 3.8%.
Analysts expect Novartis’ 2024 EPS to grow by 5.65% to $7.29, with sales rising 8.4% to $49.25 billion.
bluebird bio (BLUE)
bluebird bio focuses on the exciting gene therapy space but carries high risk, with a market cap under $183 million. The global gene therapy market valued at $8.75 billion in 2023 could surge to $52.4 billion by 2033, implying a blistering CAGR of 19.6%.
Analysts expect bluebird’s 2024 sales to soar by 881.4% to $35.3 million. While BLUE stock is not cheap, its growth potential makes it worth considering.
Ultragenyx Pharmaceutical (RARE)
Specializing in rare disease therapeutics, Ultragenyx has a market cap of $3.25 billion. The global market for rare diseases reached $119.6 billion in 2021 and could grow to $335.84 billion by 2030, with a CAGR of 12.8%.
Analysts project Ultragenyx's 2024 revenue to increase by 18.3% to $513.54 million, and potentially even reach $748 million by 2025.
Each of these biotech stocks offers unique opportunities and risks. Before investing, consider consulting with a financial advisor to understand how they align with your investment goals and risk tolerance.