Biotechnology is where technology and biology meet to advance the field of medicine.
And my team and I are convinced that it’s one of the most lucrative mega trends of the next decade — similar to investing in the internet in the 1990s!
The chart below shows the industry’s enormous growth in global revenue:
In 2020, the race to find a vaccine for COVID-19 illuminated the importance of biotech. The global industry generated $284 billion.
Experts project that annual revenue will jump 77% by 2026!
COVID-19 reminded us how crucial biotech is in the pharmaceutical sector. Companies now rely on it to find more effective therapies and to develop vaccines faster.
Today’s Power Stock is Regeneron Pharmaceuticals Inc. (Nasdaq: REGN).
Regeneron develops and manufactures medicines including:
- Eylea (to treat macular degeneration).
- Dupixent (to treat dermatitis and asthma).
- Zaltrap (to treat colorectal cancer).
In addition, the company has been on the front lines in the battle against COVID-19. Its antibody therapies led the charge to develop vaccines.
REGN scores a “Strong Bullish” 96 out of 100 on our Stock Power Ratings system, and we expect it to beat the broader market by 3X in the next 12 months.
REGN Stock: Outstanding Quality & Growth + Low Volatility
Two items stood out about REGN in my research:
- The company recently announced it was acquiring Checkmate Pharmaceuticals for $250 million. This adds melanoma therapy vidutolimod to REGN’s cancer-fighting arsenal.
- In 2021, Regeneron increased its total annual revenue by 89%, thanks to its REGEN-COV COVID-19 antibody therapy.
REGN is one of the highest-quality stocks we rate, scoring a perfect 100 on the metric.
For proof, its returns on assets, equity and investments are in the positive double digits, while its biopharmaceutical peers are negative.
Regeneron’s operating margin is an excellent 55.7%. Its peers’ operating margin average is negative 256.7%.
The stock’s growth potential is outstanding: One-year annual earnings-per-share growth rate is 135.8%, while its one-year annual sales growth rate is 89.14%.
REGN earns a 99 on growth — putting it in the top 1% of all stocks we rate on the metric.
REGN’s share price saw a short-lived dip in October 2021.
However, after trading sideways to close out 2021, the stock has increased about 20% from late February 2022 to today.
The stock is up 46.7% for the year, while its biopharmaceutical peers are up just 25.7%.
With its Power Stock Rating of a 96 overall, we’re “Strong Bullish” on Regeneron and expect it to beat the broader market by at least three times in the next 12 months.
REGN is a rare find:
- Top-notch quality.
- Excellent growth.
- Strong momentum.
- Low volatility.
Add an unmatched mega trend, and you won’t find many stocks as powerful as this one!
Stay Tuned: Premier Debt Management Company
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
Stay tuned for the next issue, where I’ll share all the details on a debt management company that will benefit from an environment of higher rates and inflation.
Matt Clark, CMSA®
Research Analyst, Money & Markets