A few stock segments offer stronger opportunities than the healthcare stocks. It’s not an easy sector to play, but veteran investors know that these stocks, despite their famously high overhead and long product lead times, can turn on a dime and deliver a win.
It’s all tied into the nature of the biopharma industry. These companies spend fortunes researching new drugs and medical techniques – but their research can pan out in the form of multi-billion addressable markets. In the meantime, investors rely on a few key indicators – clinical study results and regulatory actions, mainly, but also new commercial entries – to determine the likelihood of sustainable revenues. Those clinical and regulatory catalysts can make biotech stocks boom – or bust.
And right now, two 5-star analysts at Goldman Sachs are pointing out healthcare stocks that look attractive. The reasons can vary, but for investors, the message is clear: according to Goldman, these are stocks to buy now.
We’ve opened up the database at TipRanks to pull up the latest details on these picks, to find out just what makes them attractive. Here they are, along with comments from the Goldman analysts.
Apellis Pharmaceuticals (APLS)
The first stock we’ll look at is Apellis, a biopharma firm that has caught the gold ring – it’s at the commercial stage, with an approved drug on the market and a large potential patient base. The company has developed the ‘first new class of complement medicines in 15 years,’ a set of new therapeutic agents that act through the C3 pathway. This is the complement system, a part of the immune system, and the C3 protein starts the complement cascade, natural process that clears out damaged cells, and pathogens, from the body. An overactive complement cascade can damage healthy cells and tissue, causing a variety of disease conditions.
Getting to specifics, Apellis focuses on conditions of the nervous system and the retina, working to meet the high unmet medical needs of conditions with few or nor available treatment options. Using the C3 pathway as its starting…
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