4 Lesser-Known Biotech Stocks to Consider Adding to Your Portfolio
The COVID-19 pandemic brought a renewed interest to biotech firms, with many searching for treatments and vaccines. This led to strong returns for many top biotech stocks. But there are smaller, lesser know companies that are also poised for strong returns such as Vanda Pharmaceuticals (VNDA), Sino Biopharmaceutical (SBHMY), Otsuka Holdings (OTSKY), and Xoma (XOMA).
When it comes to biotech stocks, the biggest names tend to receive the vast majority of coverage from the media. However, investors willing to dig a little deeper will find plenty of other biotech stocks worthy of serious consideration.
Instead of trying to look for biotech stocks on your own, lean on our team to do the work on your behalf. Keep an open mind and remain objective as you read about lesser-known biotech stocks. You just might add a couple of big winners to your portfolio.
Below, I provide a look at four of the best lesser-known biotech stocks to consider. This includes Vanda Pharmaceuticals (VNDA), Sino Biopharmaceutical Limited (SBHMY), Otsuka Holdings (OTSKY), and Xoma Corporation (XOMA).
Vanda Pharmaceuticals (VNDA)
This biopharmaceutical company develops and commercializes drug candidates at the clinical stage. To be more specific, VNDA has established exclusive global commercial rights to certain drug candidates being developed to treat disorders of the central nervous system.
VNDA has an overall grade of B, which translates into a Buy rating in our POWR Ratings system. The stock has an A grade in the Value component and B grades in the Quality and Growth components. Investors who are curious about how VNDA grades out in the Momentum, Sentiment, and Stability components can find out by clicking here.
Out of 492 publicly traded companies in the Biotech industry, VNDA is ranked in the top five, slotting in at number four. Click here to find other top stocks in the Biotech industry.
VNDA is trading about $4 away from its 52-week high of $20.51. The stock's forward P/E ratio is 28.74. Analysts are bullish on VNDA, establishing an average price target of $24 for the stock. If VNDA reaches this price, it will have increased by 43%.
Sino Biopharmaceutical Limited (SBHMY)
SBHMY is an investment holding business focused on making and selling pharmaceutical products. SBHMY business segments include chemical medicines, modernized Chinese medicines, and western medicines. The company's investment wing provides long-term investments.
The company's "Other" segment is centered on research and development, providing services to healthcare businesses, hospitals, and third parties. Headquartered in Hong Kong, SBHMY's business is primarily focused on developing medicines for treating respiratory system diseases, diabetes, analgesia, and tumors.
SBHMY has an overall grade of A or a Strong Buy rating in our POWR Ratings system. It has a grade of A in the Stability component and B grades in the Quality, Value, and Growth components. To see how SBHMY fares in the Momentum and Sentiment components, click here. Out of the 492 stocks in the Biotech industry, SBHMY is ranked second.
Otsuka Holdings (OTSKY)
Based in Tokyo, Japan, OTSKY was founded way back in 1950. This company makes and sells pharmaceuticals along with nutritional supplements. OTSKY's business segments include pharmaceuticals, consumer products, and nutraceuticals.
OTSKY's pharmaceuticals segment makes therapeutic drugs and infusions to treat maladies with the central nervous system and infectious diseases. OTSKY's nutraceuticals wing develops and markets nutritional items, including health beverages, dietary supplements, and nutritious food. OTSKY's consumer products division is focused on mineral water along with other beverages and foods.
OTSKY has an overall grade of B, which is a Buy rating in our POWR Ratings system. It has a grade of A in the Value and Stability components. To access the rest of its grades, such as Quality, Sentiment, and Momentum, click here. OTSKY is ranked 5th in the Biotech industry.
Xoma Corporation (XOMA)
XOMA makes genetically engineered products centered on proteins and antibodies to treat cancer, inflammatory disorders, immunological disorders, and infectious diseases. XOMA is currently trading about $10 below its 52-week high of $46.32. The stock's 52-week low is $15.48.
XOMA has an overall grade of B, which is a Buy rating in the POWR Ratings system. It has B grades in the Quality and Growth components. You can find how XOMA fares in the Sentiment and Momentum components by clicking here. XOMA is ranked 20th in the Biotech industry.
Analysts are bullish on XOMA, establishing an average target price of $48.50. If XOMA reaches this level, it will have popped by more than 28%. The analysts' highest target price for the stock is $56, while the lowest target price is $41. Of the three analysts who have issued recommendations for XOMA, two rate it a Strong Buy or Buy.
VNDA shares were trading at $17.17 per share on Friday morning, up $0.14 (+0.82%). Year-to-date, VNDA has gained 30.67%, versus a 11.19% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.4 Lesser-Known Biotech Stocks to Consider Adding to Your Portfolio appeared first on StockNews.com