S&P 500   3,911.74
DOW   31,500.68
QQQ   294.61
S&P 500   3,911.74
DOW   31,500.68
QQQ   294.61
S&P 500   3,911.74
DOW   31,500.68
QQQ   294.61
S&P 500   3,911.74
DOW   31,500.68
QQQ   294.61

2 Biotech Stocks Showing Serious Relative Strength

Wednesday, April 6, 2022 | Sean Sechler
2 Biotech Stocks Showing Serious Relative Strength

These Biotech Stocks Have Been Brilliant in 2022 Thus Far

Biotechnology is known to be one of the most volatile sectors in the market, which is why it’s been so interesting to see certain stocks in that area showing lots of relative strength during a volatile first few months of the year. Investors should note that it is especially important to choose carefully when adding exposure in this area of the market, as many of these companies are one FDA approval away from success and failure. A great way to potentially take advantage of the upside that biotech stocks have to offer is by narrowing your focus to companies that offer both a strong pipeline of promising new drugs and an existing line of successful drugs that help to keep the business financially stable.

A few names that fit that description have been some of the biggest outperformers in the market to start the year, which tells us a lot about what institutions and large investors are interested in buying during an uncertain period for both the economy and the market. There’s certainly a good chance that these current winners continue trending higher, particularly thanks to their lower exposure to geopolitical risks and sky-high upside should they receive approval for a new blockbuster drug. That’s why we’ve put together a brief overview of 2 biotech stocks that are showing serious relative strength to help you isolate some of the most intriguing names in the sector to target now.

Let’s take a deeper look below.


First up is AbbVie, a very appealing biotech stock that has rallied over 20% year-to-date and continues to trend nicely. This is an appealing research-based biopharmaceutical company for several reasons, including a very consistent history of dividend increases. In fact, AbbVie is a dividend king, which means the company has boosted its payout for 50 consecutive years. The stock offers a 3.48% dividend yield and investors can likely count on the company to generate enough cash flows to support the dividend for years to come. That type of consistency and reliability is not easy to find these days, which is likely one reason why shares have been rallying.

It’s worth noting that AbbVie’s key drug Humira, which is used to treat rheumatoid arthritis and is the company’s largest product by revenue, will face a lot of biosimilar competition in 2023. With that said, AbbVie has been focused on developing new drugs that can drive growth and diversify its product base for the long term. Oncology drugs like Venclexta and Imbruvica are good examples, along with immunology drugs like Skyrizi and Rinvoq. The company also acquired Botox-manufacturer Allergan back in 2020 which should lead to strong organizational synergies and a more diverse revenue base for AbbVie over the long term, making this a very appealing option in the biopharma space.

Vertex Pharmaceuticals (NASDAQ: VRTX)

Cystic fibrosis is one of the most common and most serious genetic diseases in America, which is a great reason why Vertex Pharmaceuticals is an easy company to get behind. It’s a biotechnology company that is focused specifically on developing and commercializing therapies for the treatment of cystic fibrosis. Shares of this biotech stock have recently broken out to new all-time highs and are currently up over 22% year-to-date, which is strong outperformance compared to the S&P 500 thus far in 2022. Vertex is appealing given the company’s dominant position in CF drugs, as it has limited competition in that space and is eligible to treat roughly 90% of the CF population with its drugs Kalydeco, Orkambi, Symdeko, and Trikafta.

It’s also worth noting that Vertex has primarily discovered many of its new drug candidates in-house, which points toward the potential for future successful drugs in the company’s pipeline. Vertex’s revenue grew by 22% year-over-year in 2021, and with exciting new gene-editing candidates that are in phase 3 trials, the company could be on the verge of even more growth ahead. The bottom line is that Vertex Pharmaceuticals has been one of the strongest stocks in the market over the last few weeks, and with good reason. Investors looking for exposure to this intriguing company might want to consider adding shares on pullbacks in the coming sessions.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Vertex Pharmaceuticals (VRTX)
2.0812 of 5 stars
$292.55+3.2%N/A30.79Moderate Buy$282.61
AbbVie (ABBV)
2.901 of 5 stars
$152.34+1.9%3.70%21.86Moderate Buy$159.75
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Vertex Pharmaceuticals right now?

Before you consider Vertex Pharmaceuticals, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Vertex Pharmaceuticals wasn't on the list.

While Vertex Pharmaceuticals currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastHow To Navigate The Market Downturn Like A Pro

In this episode, Kate sits down with Kyrill Astur, CEO of portfolio management firm Centerfin. Kyrill brings a background from Wall Street and hedge funds to his current role helping individual investors navigate the market challenges while investing for their future.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.