Zacks Investment Ideas strengths: Gilead Sciences, Regeneron and Avid Bioservices

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Chicago, IL – December 30, 2021 – Today Zacks Investment Ideas presents: Gilead Sciences, Inc. GILD, Regeneron Pharmaceuticals, Inc. REGN and Avid Bioservices, Inc. CDMO.

Follow the leader: 3 biopharmaceutical actions showing relative strength

Follow the leader.

We have all played this game at some point in our lives. The popular children’s game helps teach our children to be patient and listen to instructions. It also sharpens their observational skills as they have to mimic the leader’s actions.

As investors, we want to be in top stocks. The problem for most investors is that they fail to notice the relevant signs and distinctions of leaders. They are too busy holding onto former losers in the hope of breaking even and refusing to recognize the buy signals that major stocks are demonstrating beneath the surface. These investors often pay too much attention to the financial media, which usually get it wrong and usually don’t invest in the stocks they tout on TV.

The best investors exemplify the skills we teach our young people. They are extremely patient and wait for appropriate entry points. They know what to look for in terms of price patterns, sector rotation and relative strength. These investors have built a process over time that allows them to identify the top stocks at all times.

At Zacks, we give you the tools to help you identify top stocks and outperform the market. Our Zacks Industry Ranking identifies major industry groups that contain market leaders, providing tailwind to your investment success. Our Zacks Rank methodology identifies stocks that are experiencing positive earnings estimate revision activity, allowing investors to jump on board. before an emerging rally begins. And our ESP earnings filter gives investors the ability to spot stocks most likely to break consensus estimates.

These are just a few of the benefits available to Zacks subscribers. Our Zacks style scores and premium filters also help investors narrow down the investment universe to only top names. This is the key – we only want to include the best of the best in our portfolio, which will allow us to maximize our investment potential.

Let’s take a look at three biopharmaceutical actions that show recent relative strength. These stocks have dominated the major indices this year and are showing signs of continued outperformance.

Gilead Sciences

Gilead Sciences is a global research-based biopharmaceutical company that discovers, develops and markets innovative drugs. GILD works to transform and simplify care for people with life-threatening illnesses, including treatments for HIV / AIDS, liver disease, cancer, inflammatory and respiratory disease, and cardiovascular disease. Founded in 1987 and headquartered in Foster City, Calif., Gilead Sciences has entered into collaborative agreements with other biopharmaceutical giants, including Bristol-Myers Squibb, Merck, and several other companies.

GILD has built a strong portfolio including, but not limited to, hepatitis C virus drugs, HIV / AIDS therapies, breast cancer drugs, as well as their COVID-19 treatment ( remdesivir). The company’s diverse product portfolio bodes well for long-term growth. Gilead is also advancing in oncology with strategic acquisitions such as Immunomedics in 2020.

GILD recorded an average positive surprise of 15.79% over the four quarters. The company recently reported EPS of $ 2.65 in October, a surprise of + 54.07% from consensus. Trading at a relatively undervalued forward P / E of 9.04, GILD is showing relative strength as the new year approaches. The stock rose more than 31% in 2021 and is currently peaking at 52 weeks. New highs are bullish for investors.

What the Zacks model reveals

Zacks Earnings ESP (Expected Surprise Prediction) seeks to find companies that have recently seen positive earnings estimate review activity. This more recent information can be a better predictor of the future, which can give investors a head start during earnings season. The technique has proven to be very useful in finding positive surprises. In fact, by combining a Zacks # 3 or better ranking and a positive earnings ESP, stocks produced a positive surprise 70% of the time.

GILD has a Zacks # 2 Buy ranking and an ESP of + 24.48% earnings. The recent upward trend in earnings looks set to continue. Zacks’ consensus estimate for 2021 EPS is $ 8.07, which represents a growth rate of 13.82% from 2020. GILD is due to release its results on February 3e, 2022.

Regeneron Pharmaceuticals

Regeneron Pharmaceuticals is a biopharmaceutical company that invents, develops, manufactures and markets therapeutic drugs for the treatment of serious illnesses. REGN has developed therapeutic candidates for the potential treatment of obesity, rheumatoid arthritis, cancer and asthma. Founded in 1988 and based in Tarrytown, NY, REGN has established collaboration and licensing agreements with companies such as Sanofi, Bayer, Roche Pharmaceuticals, as well as an agreement with the US Department of Health and Human Services.

REGN’s main growth engine is Eylea, its treatment for age-related neovascular macular degeneration as well as diabetic macular edema. Growth in US markets is driven by demographic trends with an aging population and an overall increase in the prevalence of diabetes. REGN saw an incremental contribution from its REGEN-VOC virus treatment which significantly increased its revenue. We expect sales to continue their recent trend as the pandemic continues.

Trading at a grossly undervalued futures P / E of 8.99, Regeneron has beaten earnings estimates in each of the past ten quarters. The company delivered a surprise average profit over the last four quarters of + 28.93%. REGN recently reported November EPS of $ 15.37, a positive surprise of 56.68% compared to estimates. The stock has grown in step with those gains, advancing nearly 34% this year.

Analysts covering REGN have increased their annual profit estimates by 11.53% in the past 60 days. Zacks’ consensus estimate for BPA 2021 now stands at $ 71, a phenomenal growth rate of 125.61% from last year. REGN is expected to release its next quarterly earnings report on February 4e, 2022.

Avid Bioservices

Avid Bioservices is a contract development and manufacturing organization, providing clinical and commercial manufacturing services focused on biopharmaceutical drugs derived from mammalian cell culture. Founded in 1981 and headquartered in Tustin, California, CDMO also provides process development activities such as cell line optimization and product characterization.

A stock of Zacks # 1 Strong Buy, CDMO has beaten earnings estimates in each of the past five quarters, averaging 316.67% over the past year. The company recently reported EPS of $ 0.07 earlier this month, an astonishing 800% positive surprise from consensus. This trend of profit beating has supported the rise of CDMO stock by almost 160% this year.

Analysts have increased their estimates for FY2022 EPS by 8% over the past thirty days. Zacks’ consensus estimate now stands at $ 0.27, which translates to 350% growth from 2020. The CDMO is expected to release its results on March 14.e.

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Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report

Gilead Sciences, Inc. (GILD): Free Stock Analysis Report

Avid Bioservices, Inc. (CDMO): Free Inventory Analysis Report

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