This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Biotech Is Where the Bucks Are

Stocks in this article: REGNGILDAEGR

Let's look at two other high-rated biotech investments from the Best Stocks Now app.

Though not quite as dramatic as Regeneron in its performance, Gilead Sciences (GILD) has been making investors healthy for 10 years.

Data from Best Stocks Now App

The returns over the last one, five and 10 years are 113%, 40%, 15% and 25% per year.

Gilead is an international leader in drugs to treat viral, fungal, respiratory and cardiovascular diseases.


With a forward price-to-earnings ratio of 18.4 and an expected growth rate of 25.1% over the next five years, the price-to-earnings-to-growth ratio is still a very favorable 0.73.

Furthermore, when I carry out earnings estimates over the next five years at a 25% growth rate and apply an appropriate multiple, I compute a five-year target price of $106.

Data from Best Stocks Now App

Gilead Sciences is still one of my top-ranked stocks.

Data from Best Stocks Now App

Aegerion Pharmaceuticals (AEGR) is a different kind of investment. It is also a new top pick of the Best Stocks Now app.

Data from Best Stocks Now App

Aegerion makes drugs for rare diseases we hear about only on television medical shows. One of the diseases is called HoFH. Unless you are a doctor, you won't be able to pronounce what it really is.

But investors know this: Insurance companies are paying $250,000 to $300,000 per year per patient for this treatment.

This is a small-cap stock without the five- to 10- year records of returns I normally like to see.

Data from Best Stocks Now App

So this is for aggressive investors only. That means people who not only aggressively buy, but also aggressively keep an eye on their stocks.

Is it high risk? Absolutely. That's why I keep an eye on it every day. But as long as it keeps returning profits to investors, I will continue to gratefully accept them.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs