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Biotech Is Where the Bucks Are

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 - Get Report) 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 - Get Report) 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.
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