Top 5 Small-Cap Biotechnology Stocks for a Stable Portfolio

Zacks06-21

The biotechnology industry had a rough first quarter after a decent performance in 2023. The majority of biotech players do not generate enough revenues to fund their operations and are dependent on ...

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The majority of biotech players do not generate enough revenues to fund their operations and are dependent on ...</p>\n\n<a href=\"https://finance.yahoo.com/news/top-5-small-cap-biotechnology-122400839.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Top 5 Small-Cap Biotechnology Stocks for a Stable Portfolio</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTop 5 Small-Cap Biotechnology Stocks for a Stable Portfolio\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-21 20:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/top-5-small-cap-biotechnology-122400839.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The biotechnology industry had a rough first quarter after a decent performance in 2023. The majority of biotech players do not generate enough revenues to fund their operations and are dependent on ...</p>\n\n<a href=\"https://finance.yahoo.com/news/top-5-small-cap-biotechnology-122400839.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BCYC","symbol_name":"Bicycle Therapeutics Limited","start_time":0,"source_url":"https://finance.yahoo.com/news/top-5-small-cap-biotechnology-122400839.html","article_id":"2445765194","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/vtsVt8PEmb10KQ4cnwEJfQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/96776645e0ac7ab203b7d5e3b37251a6"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2445765194","pubTimestamp":1718972640,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The biotechnology industry had a rough first quarter after a decent performance in 2023. The majority of biotech players do not generate enough revenues to fund their operations and are dependent on external funds. A company starts generating revenues following a successful FDA approval and the launch of a drug.Under this circumstance, a high interest rate regime is detrimental to the biotech industry. The primary reason for the industry’s weak performance year to date is that the Fed refrained from reducing the 23-year high interest rate, which is in the range of 5.25-5.5%, despite widespread expectation that the central bank will cut the benchmark lending rate by at least 75 basis points this year.Nevertheless, on Jun 12, in his post-FOMC meeting statement, Fed Chairman Jerome Powell indicated one cut of 25 basis points in the Fed fund rate in 2024. Moreover, the latest “dot-plot” of the FOMC meeting hinted at a full 1% rate cut across 2025. Consequently, the terminal rate of the Fed","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BCYC":"Bicycle Therapeutics Limited","CSTL":"Castle Biosciences, Inc.","ARQT":"Arcutis Biotherapeutics Inc.","BK4196":"保健护理服务","LXRX":"莱斯康制药","BK4139":"生物科技","PRME":"Prime Medicine, Inc."},"translate_title":"稳定投资组合的前5只小型生物技术股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARQT":1,"CSTL":1,"LXRX":1,"PRME":1,"BCYC":0.9,"US7Y.BOND":0.9,"US6M.BOND":0.9,"US5Y.BOND":0.9,"US3Y.BOND":0.9,"US30Y.BOND":0.9,"US2Y.BOND":0.9,"US12M.BOND":0.9,"US10Y.BOND":0.9,"US912797FS14.BOND":0.6,"US912797GB79.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"The biotechnology industry had a rough first quarter after a decent performance in 2023. The majority of biotech players do not generate enough revenues to fund their operations and are dependent on external funds. A company starts generating revenues following a successful FDA approval and the launch of a drug.  \nUnder this circumstance, a high interest rate regime is detrimental to the biotech industry. The primary reason for the industry’s weak performance year to date is that the Fed refrained from reducing the 23-year high interest rate, which is in the range of 5.25-5.5%, despite widespread expectation that the central bank will cut the benchmark lending rate by at least 75 basis points this year.\nNevertheless, on Jun 12, in his post-FOMC meeting statement, Fed Chairman Jerome Powell indicated one cut of 25 basis points in the Fed fund rate in 2024. Moreover, the latest “dot-plot” of the FOMC meeting hinted at a full 1% rate cut across 2025. Consequently, the terminal rate of the Fed fund rate currently stands at 4.1% by the end of 2025.\nA low interest rate environment is likely to raise the margins of biotech players as these companies need huge capital to continue clinical studies before getting FDA approval. Therefore, things are likely to turn around in the second half of 2024.\nBiotech companies are looking to bolster their product portfolios and pipelines through collaborations and buyouts. Hence, mergers and acquisitions are back in the spotlight. Given the continuous need for innovative medical treatments, irrespective of the state of the economy, the biotech industry can be a safe haven amid a volatile and uncertain macroeconomic environment.\nAn attractive pipeline candidate is the key lure for biotech companies. Cost synergies in research and development (R&D) are added benefits, as quite a few smaller biotech companies are using innovative technologies to develop drugs and treatments. With increasing R&D spend and most companies looking to diversify, new drug approvals are likely to see an acceleration going forward.\nThe Zacks-defined Biomedical and Genetics Industry is currently ranked in the top 34% of industries. Specifically, it is ranked number 85 among 249 industries. Because it is ranked in the top half of the Zacks-ranked industries, we expect it to outperform the market over the next three to six months.\nOur Top Picks\nWe have narrowed our search to five small-cap (market capital < $1 billion) biotech stocks with strong potential for the rest of 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nThe chart below shows the price performance of our picks year to date.\nImage Source: Zacks Investment Research\nArcutis Biotherapeutics Inc. ARQT is a late-stage biopharmaceutical company. ARQT is focused on developing and commercializing treatments for unmet needs in immune-mediated dermatological diseases. ARQT’s product pipeline consists of ARQ-151, ARQ-154 and ARQ-252 for multiple indications, including psoriasis, atopic dermatitis, seborrheic dermatitis and eczema, which are in the clinical stage.\nArcutis Biotherapeutics has an expected revenue and earnings growth rate of more than 100% and 57.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 35.7% over the last 60 days.\nBicycle Therapeutics plc BCYC is a clinical-stage biopharmaceutical company, which develops a class of medicines for diseases that are underserved by existing therapeutics in the United States and the United Kingdom. BCYC is focused on developing medicines, referred to as Bicycles, for diseases underserved by existing therapeutics.\nFurther, BCYC collaborates with biopharmaceutical companies and organizations to develop programs in therapeutic areas. BCYC has collaboration and license agreements with Bayer Consumer Care AG, Novartis Pharma AG, Cancer Research UK, Cancer Research Technology Ltd, and Oxurion NV.\nBicycle Therapeutics has an expected revenue and earnings growth rate of 55.4% and 12.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 14.6% over the last 60 days.\nCastle Biosciences Inc. CSTL is a commercial-stage dermatological cancer company. CSTL is focused on providing physicians and patients, with clinically actionable genomic information.\nCSTL provides testing solutions for the diagnosis and treatment of dermatologic cancers, Barrett's esophagus, uveal melanoma, and mental health conditions. CSTL offers its products to skin cancer, gastroenterology, and mental health markets.\nCastle Biosciences has an expected revenue and earnings growth rate of 18.7% and 20.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 15.8% over the last 30 days.\nPrime Medicine Inc. PRME is a biotechnology company that delivers genetic therapies to address the spectrum of diseases by deploying gene editing technology. PRME has a research collaboration with Cimeio Therapeutics to develop Prime Edited Shielded-Cell & Immunotherapy Pairs for genetic diseases, acute myeloid leukemia, and myelodysplastic syndrome.\nPRME offers Prime Editors with a Prime Editor protein, comprising a fusion between a Cas protein and a reverse transcriptase enzyme, and a pegRNA, which targets the Prime Editor to a specific genomic location and provides a template for making the desired edit to the target DNA sequence.\nPrime Medicine has an expected revenue and earnings growth rate of more than 100% and 19.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.9% over the last 60 days.\nLexicon Pharmaceuticals Inc. LXRX is a leader in defining the functions of genes for drug discovery using large-scale knockout mouse technology. LXRX has invented high-throughput gene trapping technology to discover thousands of genes and expand its OmniBank vast library of mouse clones. LXRX uses an integrated platform of functional genomic technologies to accelerate large-scale analysis of mammalian gene function for drug discovery.\nLexicon Pharmaceuticals has an expected revenue and earnings growth rate of more than 100% and 11.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last seven days.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nLexicon Pharmaceuticals, Inc. (LXRX) : Free Stock Analysis Report\nPrime Medicine, Inc. (PRME) : Free Stock Analysis Report\nBicycle Therapeutics PLC Sponsored ADR (BCYC) : Free Stock Analysis Report\nCastle Biosciences, Inc. (CSTL) : Free Stock Analysis Report\nArcutis Biotherapeutics, Inc. (ARQT) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.27.0","shortVersion":"4.27.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2445765194"}